Hedge Funds Shy From Gold, Oil; Short Copper

Jul 3 2013 | 2:34am ET

Hedge funds continued to cut back on their gold investments last week, with bullish bets on the precious metal hitting a five-year low.

Hedge funds and other money managers cut their net-long gold positions by 20% in the week ended June 25, according to the Commodity Futures Trading Commission. The 31,197 futures and options contracts held by speculators was the fewest since June 2007.

Short bets against gold headed in the other direction, jumping 5% to hit their second-highest level ever.

Hedge funds don’t have much faith in other commodities, either, with net-long bets across 18 of them falling 9% last week, the biggest drop in three months. Long oil positions fell 11%, platinum bets dropped to their lowest level since August and palladium positions their most in 11 weeks. Short bets on copper also rose sharply.

Agricultural commodities were less hard-hit, with net-long positions across a basket of 11 products rising 5.9%. Those gains were not seen across the board, however, with corn and soybean holdings falling.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note