Hedge funds buy on the dip according to Jill Carey, Equity Strategist at BAML. However, this report came out yesterday (and missed our attention), after today’s fears of Ben Bernanke tapering the equation may (or may not have changed). Stay tuned to our updates on exclusive hedge funds news to find out. According to data last from last week, during which the S&P 500 was down 1.0%, BofAML clients were net buyers of $725mn of US...
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Fund managers are holding record underweights to the commodities sector, while emerging market sentiment has hit a near five year low, according to the latest Bank of America Merrill Lynch Fund Manager Survey. The survey, which canvasses 248 global fund managers with assets under management of $708 billion, found extreme bearishness in Emerging Market area which is especially tied to Chinese growth, in addition to fears over U.S. Treasury volatility. According to the latest Bank...
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Macro hedge funds increased their long exposure to 10yr Treasuries to a two-year high and to US dollars to the highest since July 2012 according to a new report from MacNeil Curry, CFA, CMT, Technical Strategist BAML, as noted in the firm’s hedge fund monitor. Both positions are in a crowded long. In addition, Macro hedge funds started to rotate from non-US equities to US assets another sign of a flight to safety. Further details below. Long/Short...
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Bank of America Merrill Lynch in its currency strategy report feels despite continuous profit taking, selective buying could soon emerge as investors remain in risk on mode. Athanasios Vamvakidis and the team at BofA Merrill Lynch feel investors don’t want to spoil the party. Investors resorted to booking profit to protect good average returns gained so far this year. Risk on mode: USD against GBP and AUD: The BAML analysts in their liquid cross border flows...
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BAML is out with their weekly hedge fund monitor. Only a few days ago, BAML came out with their quarterly hedge fund monitor and noted that AIG remains the top hedge fund stock. In this week’s weekly monitor, Stephen Suttmeier, CFA, CMT of BAML notes that market neutral hedge funds have been cutting their equity exposure and are now 9% net short. Significant estimated factor exposures for Equity Market Neutral hedge funds Market neutral hedge funds...
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BAML is out with their quarterly hedge fund report. The note by Stephen Suttmeier, CFA, CMT of BAML discusses new observations and positions of hedge funds through March 31st 2013. Below is a summary and a short excerpt from the first point on hedge fund net exposure. UPDATED: Full report from BAML embedded below in scribd: Hedge fund net exposure Based on the quarterly 13F filings and estimated short positions of the equity holdings of...
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Analysts at Bank of America Merrill Lynch (BAML) lowered their 2013 bookings and EBITDA estimates for Zynga Inc (NASDAQ:ZNGA) after the company announced its guidance for the second quarter this year. In a recent note to investors, BAML analysts Justin Post and Ryan Gee wrote, “Zynga re-affirmed its 2013 EBITDA margin guidance of 0-10 percent, but did not provide a Bookings or EBITDA outlook. While we do not have a visibility on upcoming titles,...
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Last week was upsetting for steel and iron ore prices as investors lost further confidence in the strength of the metal industry. Coal also traded low in last month. Both coal and iron ore experienced huge sell offs as Chinese steel producers cut down their production, thus reducing demand for raw materials. Australian iron ore has fallen 30 percent since touching the peak price in February, according to the Steel Index. The Reserve Bank of...
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BAML is out with their latest hedge fund monitor. The latest data as detailed in the report by Stephen Suttmeier, CFA, CMT shows that once again hedge funds trailed the S&P 500 in May. Additionally, funds appear to be back in risk on mode. Hedge funds have added to yen shorts following the volatile trading in Japanese markets. However, macro funds have the most exposure to emerging markets since October 2011. This could be a...
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Analysts at JPMorgan North America Equity Research assumed that the Committee on Foreign Investments of the United States (CFIUS) will find a compromise solution to approve the sale of Smithfield Foods, Inc. (NYSE:SFD) Shuanghui International Ltd, the biggest pork producer in China. Smithfield Foods and Shuanghui International Transaction JPMorgan analyst Ken Goldman says that if CFIUS can find a compromise solution for approval of the acquisition agreement between Sprint Nextel Corporation (NYSE:S) and Softbank...
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The risk-on strategy by hedge funds and other money managers seems to have picked some up steam ever since the beginning of 2013. The cash balance in margin accounts read at the end of April by NYSE Margin Debt had risen past the 2007 record highs. NYSE Margin Debt, which is an indicator of investor confidence, closed at $380 billion at the end of March and then rose 1.3 percent to $384.4 billion in April, thus surpassing...
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