News about the Facebook IPO passes on a billboard outside of NASDAQ in Times Square, New York, Tuesday, May 15, 2012.Seth Wenig
It can be hard to read what hedge funds are up to in a regular trading environment, let alone one where investors are skeptical of the euro zone's prospects. But a new report has helpfully compiled their positions globally, documenting a preference for the Nasdaq and long-dated treasuries, as well as a growing wariness of the S&P 500 and of most major currencies against the U.S. dollar.
The findings were reported by Societe Generale, which looked at research from EurekaHedge, a firm that tracks almost 25,000 alternative funds around the world. (No worries about sample size here.)
But while hedge funds are particularly positive on U.S. 30-year treasuries – a rarity – and the Nasdaq, the data isn't clear-cut. The net long positions in the Nasdaq, relative to historical averages, has definitely fallen since hitting a historical peak in March, SocGen noted. And although 30-year treasuries are in favour, their 10-year siblings aren't.
Still, the data is useful. On the currency front, hedge funds aren't so doom and gloom about the sterling versus the U.S. dollar, but they definitely don't like the Swiss franc, the yen or the euro versus the greenback. (Especially the latter.) They're also particularly negative on 30-day fed funds.
In commodities, positions in crude are still quite favourable, but SocGen noted that oil buying is definitely cooling. And get this: their favourite commodity position right now? Soybeans.
Tim Kiladze