Hedge Funds Increase Gold Bets

Jul 29 2013 | 9:42am ET

Hedge funds are getting bullish on gold, again.

Long bets by money managers increased by 26% as of July 23, the Commodity Futures Trading Commission said, the fourth straight week that futures and options holdings on the metal have rose. Hedge fund, which had been cutting gold after taking a beating on long bets, appear convinced that the Federal Reserve will begin to taper its stimulus programs later rather than sooner.

Hedge funds poured money into other commodities, as well. Long bets across 18 U.S.-traded commodities rose 7.4%. Crude oil longs rose 9.8% to their highest level in seven years.

Not all commodities were beneficiaries: Short bets on corn more than doubled, setting a new record, as net-long positions on a basket of 11 agricultural products fell 34%. Copper longs also fell sharply, by 17.2%.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note