Hedge Fund News Wrap: Week Ending 07/24/15

Bullion Dealers Trade Blame in Hunt for “Bear Raid” Leader

(Reuters) – As the global bullion market continues to reel from a dramatic plunge in gold prices on Monday, traders from Hong Kong to New York are pointing the finger at others for being behind the move while struggling to unmask the mystery sellers.

In early Asian trading hours on Monday, investors dumped more than $500 million worth of bullion in New York in four seconds with selling occurring almost simultaneously on Chinese markets.

The sheer scale of order flow across both the Shanghai Gold Exchange and the Shanghai Futures Exchange – where combined volume for the day surpassed the notional equivalent of 250 tonnes – led many market trackers to speculate that fleet-footed Chinese hedge funds were behind the move.

Read the entire article at Reuters
More coverage: The Financial Times and USA Today

Hedge Funds Dump Crude Oil as Iran Deal Threatens Prolonged Glut

(Bloomberg Business) – Speculators cut bullish bets on oil to the lowest level since March because an agreement over Iran’s nuclear program threatens to prolong a global supply glut.

Money managers reduced their net-long position in West Texas Intermediate crude by 15 percent in the week ended July 14, U.S. Commodity Futures Trading Commission data show. Longs dropped 7.9 percent and short wagers rose 4.2 percent. Bullish bets on Brent crude rose.

Iran, holder of the fourth-biggest crude reserves, may be able to increase exports as soon as December if it complies with the terms of its nuclear accord with world powers. That would add to record output from Saudi Arabia and Iraq and come at a time when the Organization of Petroleum Exporting Countries is pumping the most in almost three years.

Read the entire article at Bloomberg Business
More coverage: The Wall Street Journal and The Financial Times

ETF Assets Overtake Hedge Fund Assets

(HedgeWeek) – ETFGI reports that the second quarter has seen assets invested in the global ETF/ETP industry finally beat the assets under management in the hedge fund industry.

Deborah Fuhr says: “According to our analysis there was USD2.971 trillion invested in the 5,823 ETFs/ETPs listed globally at the end of Q2 2015.”

Assets had dropped slightly from their record high of USD3.015 trillion at the end of May 2015, Fuhr writes. HFR reports that assets in the global hedge fund industry reached a new record high of USD2.969 trillion invested in 8,497 hedge funds over the same period, some USD2 billion smaller than the assets in the global ETF/ETP industry.

Read the entire article at HedgeWeek
More coverage: The Wall Street Journal and ValueWalk