Hedge funds’ surge in long positioning may presage a correction

July 16, 2019 | Hedge Funds
https://dailyalts.com/wp-content/uploads/2019/07/53e4d14a4e5bb114a6d98074cf213576083edbe35052714c752773_640.jpg

Macro investing and commodity trading funds went long with a vengeance in March

According to Jason Goepfert, founder of Sundial Capital Research Inc., trend-following hedge funds swung from a 25% short positioning in March 2019 to over 50% long exposure.

This kind of aggressive long positioning exceeding 50% for the first time in 30 or more days has generally been followed by a market correction.

S&P 500 trends

Goepfert’s analysis of data since 2003 showed that following such a positioning by hedge funds, the index proved weak over the following two months. Moreover, the risk-reward scenario was “terrible” for up to three months later.

Usually, the S&P 500 turned lower by 0.3% after the warning, and by 1.4% in two months.

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2020/11/mockup-5288033_640.jpg
Alternative Investments: Accelerate Launches An ETF For Alternative Assets
November 25, 2020     Alternative Investments, News

Accelerate Financial Technologies launched its OneChoice Alternative Model Portfolio in September. Aimed at hard-pressed advisors and portfolio managers, the strategy offered a quick and easy way to put together a…

https://dailyalts.com/wp-content/uploads/2020/11/bitcoin-4852534_640.jpg
Digital Assets: Japanese Financial Group SBI Launches Crypto Lending
November 25, 2020     Digital Assets, News

SBI Group (TYO: 8473) is launching a crypto lending service through SBI VC Trade, its crypto-focused exchange subsidiary. SBI said it will initially allow customers to tender only bitcoin (BTC),…

https://dailyalts.com/wp-content/uploads/2020/11/screenshot-www.hippo_.com-2020.11.25-17_21_34.jpg
FinTech: Hippo Insurance Gets $350M Funding From Mitsui Sumitomo Insurance
November 25, 2020     FinTech, News, Venture Capital

Hippo, the home insurance unicorn, announced Tuesday an investment of $350 million from Mitsui Sumitomo Insurance Company, Limited, a subsidiary of MS&AD Insurance Group Holdings, Inc. In July, Hippo raised…

https://dailyalts.com/wp-content/uploads/2020/11/carrots-4545665_640.jpg
Venture Capital: Astanor Ventures Launches $325M Fund For Impact Investing in Agtech

Based in Luxembourg, Astanor Ventures combines capital, technology, and sector expertise to invest in businesses that build regenerative, scalable, and nourishing food solutions. Using this philosophy, Astanor has invested in…