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

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