Hedge Funds Cut Gold Shorts

Jun 3 2013 | 11:00am ET

Hedge funds may be back on the gold bandwagon.

After a difficult two months for the precious metal, hedge funds raised the bullish bets on gold by the most in that period, the Commodity Futures Trading Commission said. Speculative net-long positions increased by 35%, the largest jump since the middle of March, about a month before a major swoon cost gold-bug hedge funds, notably Paulson & Co. and Greenlight Capital, dearly.

The resurgence is credited to the weaker-than-expected U.S. economy, leading to speculation that the Federal Reserve would maintain its stimulus programs. Most of the gain in net-long positions actually comes from a big drop in short positions, rather than a huge number of new long bets.

Shorts against gold hit a record two weeks ago.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...