hedgies short euro against dollar “like never before”


I like this.


An eternal optimist, Liu-Yue built two social enterprises to help make the world a better place. Liu-Yue co-founded Oxstones Investment Club a searchable content platform and business tools for knowledge sharing and financial education. Oxstones.com also provides investors with direct access to U.S. commercial real estate opportunities and other alternative investments. In addition, Liu-Yue also co-founded Cute Brands a cause-oriented character brand management and brand licensing company that creates social awareness on global issues and societal challenges through character creations. Prior to his entrepreneurial endeavors, Liu-Yue worked as an Executive Associate at M&T Bank in the Structured Real Estate Finance Group where he worked with senior management on multiple bank-wide risk management projects. He also had a dual role as a commercial banker advising UHNWIs and family offices on investments, credit, and banking needs while focused on residential CRE, infrastructure development, and affordable housing projects. Prior to M&T, he held a number of positions in Latin American equities and bonds investment groups at SBC Warburg Dillon Read (Swiss Bank), OFFITBANK (the wealth management division of Wachovia Bank), and in small cap equities at Steinberg Priest Capital Management (family office). Liu-Yue has an MBA specializing in investment management and strategy from Georgetown University and a Bachelor of Science in Finance and Marketing from Stern School of Business at NYU. He also completed graduate studies in international management at the University of Oxford, Trinity College.

By Cardiff Garcia, FT, 

A chart from SocGen’s latest Hedge Fund Watch showing that as of last week, hedge funds were short the Euro against the dollar “like never before”…

Make of it what you will — obviously their positions have fluctuated dramatically in the last couple of years (along with the exchange rate itself). Since January 16 the EUR/USD has rallied from below 1.27 to just above 1.31.

Separately, here’s what hedge funds were doing with the 10-year before the Fed’s meeting yesterday:

And a comment:

Look who is buying US treasuries ahead of the Fed! As the Fed is expected to embark on another round of quantitative easing (QE3) sooner rather than later (spring 2012), hedge funds have started to buy 10Y T-notes and have strongly reduced net shorts on 30Y Treasuries.

Maybe, but it’s also possible that hedge funds were simply buying ahead of a more-dovish-than-anticipated signal from the Fed yesterday.

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