Hedge Fund Gross Leverage While the trend shows a reduction in equity exposure from hedge funds ahead of the U.S. election, the outlook post-election appears optimistic, with expectations of a market rebound as investor sentiment improves. Image: Goldman Sachs Global Investment Research
Hedge Fund and Mutual Fund Equity Exposure Mutual funds have notably increased equity allocations since 2023, reflecting a growing confidence in the stock market’s long-term potential despite ongoing volatility. Image: Goldman Sachs Global Investment Research
Hedge Funds – Net Buys Hedge funds continue to hit the sell button, resulting in significant outflows over the past 3 months. Image: BofA Securities
Hedge Funds’ Cyclical vs. Defensive Positioning During economic expansion, investors favor cyclicals over defensives. The current low hedge fund exposure to cyclical vs. defensive sectors may present a potential opportunity for contrarian investors. Image: BofA Global Research
Equities – Hedge Fund Client Four Week Average Net Flows Last week, BofA’s hedge fund clients were net buyers of equities for the first time in 10 weeks. Image: BofA Securities
U.S. Dollar Exposure of Currency Hedge Funds Will hedge funds turn bullish on the U.S. dollar? Image: J.P. Morgan
Hedge Fund Net Leverage Aggregate hedge fund net leverage remains high compared to the average level. Image: Goldman Sachs Global Investment Research
Antifragile Assets – 10-15Y Government Bonds, HFR Hedge Funds Index and Gold, Total Returns Should investors favor Chinese government bonds? Image: Gavekal, Macrobond
Rolling 6-Month Excess Return of Hedge Fund VIPs vs. S&P 500 The most popular hedge fund long positions have largely underperformed the broader market over the past 12 months. Image: Goldman Sachs Global Investment Research
Gold as Monetary Inflation Hedge Is gold an inflation hedge? The market share of gold against M2 money supply tends to increase in periods of inflation. Image: Fidelity Investments
Global Macro Hedge Funds’ Net Exposure to U.S. 10-Year Treasury Bond In terms of positioning, global macro hedge funds are currently long U.S. Treasuries. Image: Nomura