Hedge Funds: Shortest Position Ever Against the Euro ~ market folly

Friday, February 19, 2010

Hedge Funds: Shortest Position Ever Against the Euro

Based on data reported to the CFTC, Societe Generale has released their latest monthly hedge fund report that examines what speculators are buying and selling across various asset classes. Their research indicates that hedge funds have again turned to sellers of US equities, but on a smaller level than before. This is something we saw last week when we noted hedge funds had their lowest net long position in equities since May 2009.

By far the most notable takeaway from the data though is the fact that hedge funds now have the most short position against the euro ever. €11.5 billion are short the euro, an astonishing figure. This is partially offset by a €4.4 billion long euro position, leaving a net short position of €7.1 billion. This of course is a result of Greek's sovereign issues and weak policy response. In commodities, they see that funds have deleveraged across the board. Overall, deleveraging and de-risking continue to be prevalent themes.

Embedded below is Societe Generale's monthly hedge fund report thanks to a Brazilian reader in New York:

You can also directly download a .pdf here.

To see what equity hedge funds have been buying and selling, you can stay up to date with our hedge fund portfolio tracking series and our coverage of a prominent hedge fund panel.

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