Monday, May 23, 2011

If You are Interested in Hedge Funds

If you are into the hedge fund thing, ZeroHedge posted some interesting composite information via Goldman Sachs.  I've embedded the entire report below - what was fascinating to me was the concentration level in a typical hedge fund.  Most investors focus on the big whales (about 10-15 names) but it seems a lot of smaller names in the hedge fund inverse are extremely concentrated in their top 10 positions  - 64% of their long exposure v 29% in a large cap mutual fund and 19% in a small cap mutual fund. 

As I noted in 2007-2008, despite being a relatively small piece of the equity markets (3% per the latest analysis) , hedge funds have a massive impact as the marginal buyer (or seller).  We can say the same for ETFs as they only represent 4% of assets in equity markets, but are used by so much of the investment community as trading vehicles.

A lot of other tidbits here including the most widely held stocks by the hedgie community (which over the long run outperform as a group)

Our most recent Hedge Fund Trend Monitor report analyzed 700 hedge funds with $1.25 trillion of gross equity positions consisting of $822 billion of long stock-specific and ETF equity assets and an estimated $428 billion of short single-stock and ETF positions. We have published our quarterly Hedge Fund Trend Monitor for the past five years and analyzed constituent-level portfolio holdings of US hedge funds since 2001. The current report focuses on hedge fund positions at the start of 2Q 2011 and is based on 13-F filings as of May 15, 2011.

As always hit 'fullscreen' for an easier read

5.21 Kickstart

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