RECENT Hedge Funds RESEARCH
The coal subsector within the Energy Select Sector SPDR ETF (XLE), represented solely by Consol Energy (CNX), rose by 2.5% last week.
As per data from the U.S. Commodity Futures Trading Commission, hedge funds and other asset managers have turned extremely bearish on oil prices.
Carl Icahn believes that the high yield bond market is becoming riskier than ever. Icahn asserted that if a correction were to occur in the junk bond market, it is likely to be massive.
Although refiners tend to benefit from the crack spread between lower crude oil prices and higher prices of refined products, their good times are not expected to last forever.
The Greek market has been shut down since June 29. As for China, 1,300 stocks announced halts in trading last week.
At a broad level, institutional investors were bullish on JetBlue Airways in 1Q15. JetBlue’s 40.54% YTD return follows an impressive 85.71% return in 2014.
The best energy sector stocks in the past four years were assets once regarded as not worth holding. Refiner stock returns have seen huge gains over the past four years.
During slowdowns, manufacturers cut production. As a result, freight volumes hauled by railroads, airplanes, truckers, and shipping firms tend to be adversely affected.
Anadarko Petroleum (APC) was among the energy companies with the most new filings by hedge funds in 1Q15. Whiting Petroleum had the highest weekly losses.
The week ending July 6 was a rough one for US equities. Greeks rejected the austerity offer, and Grexit fears resurfaced, causing investors to pull away from risky assets.
The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) was the best performer in the energy sector in terms of year-to-date returns in the week ending June 26.
Transportation ETFs lagged the S&P 500 after outperforming the market for three consecutive years from 2012 to 2015.
1Q15 aggregate filings from institutional investors revealed a net bearish position in stocks belonging to the air freight and logistics industry.
Hedge fund indices in the energy sector offered mixed performances last week.
Smithwood Advisers was among the hedge funds that sold their stakes in SandRidge Energy in 1Q15. Hancock Holding was one of the firms that sold stakes in Vaalco Energy.
Och–Ziff Capital Management either reduced or sold its stakes held in energy companies, amounting to at least $314 million.
The question that arises is whether a bet on Microsoft is really a bet on the tech sector as a whole, or something more company specific.
In 1Q15, around 23 hedge funds created a new position in Coeur Mining. Over 52 hedge funds added to their position in Coeur Mining including Renaissance Technologies.
ETFs decreased or closed their positions in energy companies rather than increase or initiate a new stake last week. This signals a weak outlook for energy companies.
In this series, we’ll take a look at Newmont Mining’s performance over the last quarter in order to better understand its current and longer-term drivers.