Sunday, 21 December 2014
Last updated 1 day ago
Jun 3 2008 | 2:00am ET
Hedge funds were net sellers of financial stocks in the first quarter after gobbling up sector assets in the preceding two quarters.
According to a Goldman Sachs analysis of 755 hedge funds, with $833 billion of long equity positions, hedge funds now appear net short financials compared with 14% net long at year-end and 26% at the end of the third quarter. Long holdings in financials fell by $20 billion in the first quarter, and hedge fund short positions rose by an estimated $7 billion, suggesting funds were 9% net short the sector. Financials rallied 7% in April but the number of shares shorted was flat.
In addition, equity long/short funds represent the largest category of the hedge fund universe, with 34% of long equity assets, or $283 billion of the $833 of total long equity assets, and performed worst last quarter, losing 4.1% because of their overweight in the information technology space. Energy positions helped global macro funds to post highest returns.
On the flip side, global macro funds, which account for 2% of hedge fund long equity assets, were mostly tilted toward energy and financial names and posted the strongest returns of any hedge fund strategy gaining 6.9% during the quarter.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.