Monday, September 28, 2009

Hedge funds portfolios

Hedge funds raised their bets on further strengthening of stock markets to the level before last year's collapse of Lehman Brothers. Analysts Goldman Sachs have reviewed portfolios of 687 large hedge funds and discovered that there is 498 billion for growth and 346 billion for decline.

A large part of the short positions (speculation on the fall) had been closed at the end of the second quarter and have turned their bets in favor of speculation on growth. The current net long exposure is at 31 percent, the highest since June 2008. Note: most of short-covering was made at the end of July and August.

Speculations on the growth of have been opened after the stock market stabilized and improved macroeconomic data. Hedge funds also pulled out the majority of speculation on the decline in financial institutions.

For hedge funds are becoming more important so-called "bottom-up" analysis. Therefore they give priority to selecting individual stocks.

The biggest hedge funds holdings:
source: Goldman Sachs

The most favorite sectors are information technology, consumer goods producers and banks.


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