{"id":64698,"date":"2017-07-21T00:24:23","date_gmt":"2017-07-20T22:24:23","guid":{"rendered":"http:\/\/beta.next-finance.net\/news\/more-balanced-ahead-of-the-summer\/"},"modified":"2019-12-31T02:04:01","modified_gmt":"2019-12-31T01:04:01","slug":"more-balanced-ahead-of-the-summer","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/news\/more-balanced-ahead-of-the-summer\/","title":{"rendered":"More balanced ahead of the summer"},"content":{"rendered":"<p>European data were consistent with a sustainable recovery. Robust global growth and central banks\u2019 [very]\ncautious optimism revived the reflation trade. Yields were up in Europe, USD further weakened and dollarassets<br \/>\nprogressed, including EM markets and base metals.<\/p>\n<p>Prior to Yellen\u2019s speech, the week was benign for hedge funds. L\/S Equity produced alpha due to a pause<br \/>\nin the tech selloff and profitable stock picking in industrials. Special Situations funds also delivered mild<br \/>\ngains, especially in their communication positions. CTAs recovered some of the lost ground due to their<br \/>\nshort on energy and EUR, as well as from some of their equity indices. Macro funds were mild detractors,<br \/>\nmainly in their Euro vs. U.S. equity and FX stances.<\/p>\n<p>How are hedge funds positioned ahead of the summer? Overall, they tend to be more hedged and to favor<br \/>\nrelative exposures.<\/p>\n<p>CTAs remain structurally long equities in most regions. They are rebuilding their bond exposures,<br \/>\npredominantly in Europe. They turned short USD, mainly against non-G10 currencies. They are short on<br \/>\nEnergy and Agricultural contracts.<\/p>\n<p>Macro funds at Lyxor keep on arbitraging Europe vs. the U.S.. They play the European recovery through<br \/>\nequity longs and bond shorts, hedged with shorts on EUR crosses. Interestingly, they recently turned net<br \/>\nlong on USD. Finally, they also went long agricultural contracts, while keeping their long energy stance.<\/p>\n<p>L\/S Equity funds in the U.S. marginally increased their net exposures, but are increasingly sector-balanced.<br \/>\nThey are now long financials. In Europe (all bias included), funds tend to rotate toward a tilt on<br \/>\nCommunication and Industrial stocks. They are still long financials, but less than a quarter ago.<\/p>\n<p>Event Driven funds substantially reduced their overall net exposure, mainly through profit taking in<br \/>\nhealthcare and technology issues. They remain balanced between cyclical and defensive sectors.<\/p>\n<p><a href=\"http:\/\/www.next-finance.net\/http:\/\/beta.next-finance.net\/wp-content\/uploads\/2017\/07\/hedge_funds_implicit_positioning_ahead_of_the_summer_-_somewhat_more_neutral.jpg\"><img loading=\"lazy\" class=\" aligncenter size-full wp-image-64692\" src=\"IMG\/jpg\/hedge_funds_implicit_positioning_ahead_of_the_summer_-_somewhat_more_neutral.jpg\" alt=\"hedge_funds_implicit_positioning_ahead_of_the_summer_-_somewhat_more_neutral.jpg\" align=\"center\" width=\"732\" height=\"244\" \/><\/a><div id='gallery-1' class='gallery galleryid-64698 gallery-columns-3 gallery-size-herald-lay-c1'><figure class='gallery-item'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a class=\"herald-popup\" href='http:\/\/beta.next-finance.net\/wp-content\/uploads\/2017\/07\/hedge_funds_implicit_positioning_ahead_of_the_summer_-_somewhat_more_neutral.jpg'><img width=\"470\" height=\"244\" src=\"http:\/\/beta.next-finance.net\/wp-content\/uploads\/2017\/07\/hedge_funds_implicit_positioning_ahead_of_the_summer_-_somewhat_more_neutral-470x244.jpg\" class=\"attachment-herald-lay-c1 size-herald-lay-c1\" alt=\"\" loading=\"lazy\" \/><\/a>\n\t\t\t<\/div><\/figure>\n\t\t<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Risk assets range-traded before rallying after Yellen\u2019s dovish testimony before Congress and amid positive<br \/>\neconomic prints in the U.S. and Eurozone. Releases in the U.S. suggested healthy activity and job growth.<\/p>\n","protected":false},"author":1,"featured_media":64692,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1470],"tags":[1687,1743,1655,1723,1690,1651,2214,1662,2068,1672],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/64698"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=64698"}],"version-history":[{"count":1,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/64698\/revisions"}],"predecessor-version":[{"id":64699,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/64698\/revisions\/64699"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/64692"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=64698"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=64698"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=64698"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}