Trying to get at outsized profits, hedge funds have been getting more aggressive in the commodities markets. Of course, one of the hottest trades has been with agriculture, such as like corn and soybeans. But these markets can move fast and are highly sensitive to planting patterns, weather and changes in global demand.

Well, according to a report on Bloomberg.com, it looks like hedge funds are getting much more cautious on the agriculture sector. For example, there was nearly an 8% drop in wheat prices since February 18.

Continue reading Hedge Funds Bail on Agriculture Commodities

Hedge Funds Bail on Agriculture Commodities originally appeared on BloggingStocks on Fri, 25 Feb 2011 14:20:00 EST. Please see our terms for use of feeds.

In earlier days, the commodities markets were dominated by large trading houses and a small percentage of speculators. The trading houses used the markets to buy and sell their products and hedge their risks.

Now the world of commodities is completely different . Hedge funds, pension funds and mutual funds are a growing force in market participation. This year alone, contracts held by investors rose by 12% through October and are 17% higher than June 2008, as reported by the Wall Street Journal (subscription required).

Continue reading Investors Are a Growing Force in Commodities

Investors Are a Growing Force in Commodities originally appeared on BloggingStocks on Wed, 08 Dec 2010 11:00:00 EST. Please see our terms for use of feeds.

Hedge funds have the money and leverage to place large bets in commodities. This year, in particular, hedge funds have stepped up their exposure to commodities. Gold is a good example. Hedge funds have moved aggressively on the buy side during this past year.

More than ever, the movement of funds by hedge funds is controlling commodity prices. Hedge funds dumped 25% of their positions in natural gas in the week ending Sept. 28, as reported in BusinessWeek.

The commodity exchanges publish a commitment of traders report, which tracks the number of long and short contracts. Net long positions fell by 17,373 to 51,306.

Continue reading Hedge Funds Dump Natural Gas Contracts

Hedge Funds Dump Natural Gas Contracts originally appeared on BloggingStocks on Mon, 04 Oct 2010 09:30:00 EST. Please see our terms for use of feeds.

The amount of money sitting in sovereign wealth funds grew in 2009. As financial markets around the world recovered from the severity of the financial crisis that struck in September 2008, the coffers of these unique financial entities swelled to $3.51 trillion, according to the latest research from the alternative investment analysts at Preqin.

Nonetheless, some funds did experience withdrawals by their respective governments. In some cases, governments used sovereign wealth fund assets to close budgetary gaps.

Continue reading Sovereign Wealth Fund Assets Up 9% in 2009

Sovereign Wealth Fund Assets Up 9% in 2009 originally appeared on BloggingStocks on Sat, 13 Mar 2010 14:10:00 EST. Please see our terms for use of feeds.

They may say they can't stand the "ugly Americans," but there's only one place where rich Europeans will put their money.

According to alternative investment research firm Preqin, 29% of all European hedge fund investors prefer to invest in funds based in the U.S., where the managers are often able to highlight solid track records and experience, not to mention more innovative funds. The average European hedge fund investor has capital in three U.S. funds.

Continue reading A Third of Europeans Want Americans to Manage Their Money

A Third of Europeans Want Americans to Manage Their Money originally appeared on BloggingStocks on Tue, 16 Feb 2010 13:00:00 EST. Please see our terms for use of feeds.

Continue reading Managed Account Allocations to Surge in 2010

Managed Account Allocations to Surge in 2010 originally appeared on BloggingStocks on Wed, 10 Feb 2010 14:45:00 EST. Please see our terms for use of feeds.

Continue reading Insurance Companies to See Hot Cat Bond Market

Insurance Companies to See Hot Cat Bond Market originally appeared on BloggingStocks on Mon, 08 Feb 2010 09:30:00 EST. Please see our terms for use of feeds.

James Altucher is a financial journalist for The Wall Street Journal and founder of Stockpickr.com. His articles cover every angle of the market; he also stars in feature videos with other financial luminaries. He is the author of Trade Like a Hedge Fund, Trade Like Warren Buffett, SuperCa$h, and The Forever Portfolio.

He has taken a controversial path lately with numerous articles in the New York Post and Huffington Post. Some articles include: "Global Warming Is a Myth," "Should Insider Trading Be Made Legal?" "School of Hard Cash," "The Internet Is Dead (as an Investment)," and "5 Myths the Recession Taught Us."

Rumors of a new addition to the James Altucher library have entered the blogosphere, so I met with James to discuss a possible new book and the response from his recent aggressive views on finance and the stock market.

Continue reading You can profit from James Altucher's insanity

You can profit from James Altucher's insanity originally appeared on BloggingStocks on Sat, 12 Dec 2009 16:10:00 EST. Please see our terms for use of feeds.

There's nothing like a quick profit. Hedge fund manager, John Paulson, made $45.3 million in five weeks in a single gold trade. Bloomberg reports he owns 10.3 million shares of Detour Gold (DRGDF). Since purchasing the shares in October, they soared 35% to close at CAD $18 per share in Toronto.

Paulson, who manages $30 billion, has invested heavily in several gold companies. He is the largest shareholder of Anglo Gold Ashanti Ltd. (AU) with 12% of the company's stock. He also has stakes in Kinross Gold Corp (KGC) and Gold Fields Ltd. (GFI).

Continue reading Hedge fund manager John Paulson rakes in $45.3 million in a gold trade

Hedge fund manager John Paulson rakes in $45.3 million in a gold trade originally appeared on BloggingStocks on Fri, 04 Dec 2009 10:40:00 EST. Please see our terms for use of feeds.

On Wednesday, Galleon Group founder Raj Rajaratnam told employees via letter that the company is going to wind down all of its hedge funds. In a Wall Street Journal article (subscription required), a person familiar with Galleon said that one of the alternatives the company is exploring is selling out to another firm.

These alternatives were approached by Rajaratnam in his letter, as he told employees that it is "in the best interest of our investors and employees to conduct an orderly wind down of Galleon's funds while we explore various alternatives for our business."

Continue reading Galleon to shutter its hedge funds, is anyone surprised?

Galleon to shutter its hedge funds, is anyone surprised? originally appeared on BloggingStocks on Wed, 21 Oct 2009 13:10:00 EST. Please see our terms for use of feeds.

Family offices are quite active in the hedge fund space, according to Preqin, with the average family office in North America allocating 14% of its assets to this class.

Continue reading Six facts about hedge funds and family offices in North America

Six facts about hedge funds and family offices in North America originally appeared on BloggingStocks on Fri, 16 Oct 2009 13:40:00 EST. Please see our terms for use of feeds.

It's not exactly a shock, but tangible confirmation is always nice. Alternative investment research firm Preqin found in a recent survey that institutional investors are happier with their hedge fund returns now than they were a year ago. But, the gaps between happy and sad aren't as wide as you might expect.

A September 2009 survey of institutional investors revealed that 62% say "hedge fund returns have met expectations," compared to 53% in October 2008, when the market was consumed by all kinds of calamity. Only 11% responded this year that "hedge funds have exceeded expectations," which is up slightly from last year's 9%. Remember, though the market hit its worst late last year, the problem was building momentum for a while. Participants who do not feel that hedge funds have hit the mark shrank from 38% last year to 27% this year. And 66% are confident or very confident that their hedge fund investments will reach their objectives.

Continue reading Hedge fund investors happier now than a year ago

Hedge fund investors happier now than a year ago originally appeared on BloggingStocks on Fri, 16 Oct 2009 12:40:00 EST. Please see our terms for use of feeds.

Out of every five hedge fund managers, one is prone to fibbing, according to research from NYU's Stern School of Business. This is likely to pour salt in the wound of an industry that's been in rough shape for the past year. And, it'll probably add a bit more pressure for transparency.

The NYU report uses data from 444 due diligence reports that investors commissioned from 2003 to 2008. The research team put the information against the test of reality to see where the differences are. The most common stretch of the truth was the amount of their own money the managers put into their hedge funds, fund performance and regulatory and legal histories. One fund inflated its assets under management by $300 million, while another wasn't up front about one of its partner's legal records (he had stolen a Chinese junk).

Continue reading Are hedge fund managers stretching the truth?

Are hedge fund managers stretching the truth? originally appeared on BloggingStocks on Wed, 14 Oct 2009 10:00:00 EST. Please see our terms for use of feeds.

Every investor knows this bit of math: if you lose 50%, you need a gain of 100% to recover. It sounds odd, but the math is easy. You have a stock worth $100 and take a 50% loss. It's now worth $50. To get back up to $100, you need to double your money -- that's a 100% gain.

This simple rule is painfully apparent to hedge fund managers right now. While we're all celebrating the big gains they've made this year, the funds themselves understand that there's still a long way to go.

Continue reading Hedge funds still well short of high water marks

Hedge funds still well short of high water marks originally appeared on BloggingStocks on Tue, 13 Oct 2009 14:30:00 EST. Please see our terms for use of feeds.

Continue reading James Simons: Legendary hedge fund pro calls it quits

James Simons: Legendary hedge fund pro calls it quits originally appeared on BloggingStocks on Fri, 09 Oct 2009 10:30:00 EST. Please see our terms for use of feeds.

The Fairfield Greenwich Group has agreed to pay an $8 million settlement to a small group of investors in Massachusetts that lost money through the Madoff scam. This is expected to be a full repayment. Fairfield is also going to pay a $500,000 fine to the Commonwealth of Massachusetts. As part of the deal, the feeder fund does not have to admit any wrongdoing.

According to a report in USA Today, this is the first Madoff case in which a regulator secured some relief for investors. While this only addresses a relative handful of investors, the Massachusetts Secretary of State believes that it may become a precedent for other actions.

Continue reading Massachusetts and Madoff feeder fund come to agreement

Massachusetts and Madoff feeder fund come to agreement originally appeared on BloggingStocks on Wed, 09 Sep 2009 10:20:00 EST. Please see our terms for use of feeds.

What began as a $6 million endeavor in 1996 is coming to a (partial) close. Atticus Capital is shuttering two of its three hedge funds and is returning $3 billion to shareholders. The move is strictly a personal one, according to CEO Timothy Barakett in a letter to investors. Atticus is slicing its flagship fund and a smaller one, but is keeping its European Fund, which has $1.2 billion under management.

Prevailing market conditions led Barakett to begin liquidating many of the Atticus Global portfolio's holdings, an effort he expects to be complete by the end of September. Investors can expect to receive around 95% of their money in early October, with the rest being disbursed after the fund's final audit later in the year.

Continue reading Atticus to cut two of three hedge funds

Atticus to cut two of three hedge funds originally appeared on BloggingStocks on Wed, 12 Aug 2009 09:00:00 EST. Please see our terms for use of feeds.

If you think that the past 12 months have had any impact on the "2/20" hedge fund pricing model, please say hi to the Easter Bunny for me.

According to Bloomberg News, reductions from the 2% fee based on assets under management and 20% of investment gains aren't coming anytime soon. Further, the hedge fund community will only trade money for other advantages -- such as longer lockup periods and high minimum commitments (e.g., of at least $100 million).

And, it's worse if the fund is a top performer. After all, why change if you're making money? It seems that there's nothing quite like results for shutting up limited partners.

Continue reading Hedge funds refuse to move on fees

Hedge funds refuse to move on fees originally appeared on BloggingStocks on Mon, 03 Aug 2009 14:20:00 EST. Please see our terms for use of feeds.

In a word: yes.

Despite all the talk about regulating these speculative investment vehicles, "Obama's financial overhaul plan included no big surprises or threats to the lucrative, secretive industry," writes The Wall Street Journal.

The name of the game is lobbying, which is easily funded by the $1.3 trillion dollar industry. Even after numerous Ponzi schemes and frauds have recently been exposed, the U.S. government has failed at regulating hedge funds, the most speculative area in finance, in part due to the industry's lobbying efforts.

Continue reading Is Wall Street influencing Obama's regulations?

Is Wall Street influencing Obama's regulations? originally appeared on BloggingStocks on Wed, 01 Jul 2009 13:00:00 EST. Please see our terms for use of feeds.

Hedge fund manager Michael Regan has pleaded guilty to running a Ponzi scheme. Manager of the Massachusetts-based River Stream Fund, he admitted to defrauding around 70 investors. The fund held just shy of $20 million in assets ... despite the relatively meager $101,600 sitting in its accounts. The fund purported to return 20 percent a year since 2001, paying out $9 million in "profits" and returned capital.

Continue reading Ponzi manager pleads guilty and settles civil charges

Ponzi manager pleads guilty and settles civil charges originally appeared on BloggingStocks on Fri, 26 Jun 2009 15:00:00 EST. Please see our terms for use of feeds.