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###POV. Hedge Funds switch....>

GLOBAL MARKET/OPINION
GLOBAL MARKET/OPINION: ###POV. Hedge Funds switch Bund-Treasury positioning 
- Divining Hedge Fund positioning is guesswork. We ran regressions of Hedge Fund
Research's Global Hedge Fund Index against various asset classes to determine
the size and direction of influence upon hedge fund returns. We used daily data
based upon changes and the relevant chart is below.
- Hedge fund returns are still mostly linked to the S&P index and the long-held
long position appears to be rising.
- Hedge funds also appear to be increasing their long positions in emerging
market equities.
- Regarding the Global Hedge Fund Index, we find correlations were positive and
sizeable relative to a Bloomberg-Barclays UST total return index but this has
switched negative. By contrast, the positioning in euros is almost in the
opposite direction so, hedge funds now appear to be long European debt and short
Treasuries.
- We also looked at oil, gold and other commodities but there are only small
positions. See: https://tinyurl.com/yb635azz

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