Hedge Funds May Sell $200 Billion More of Assets, Survey Finds

[NOBama]

By Saijel Kishan

Nov. 24 (Bloomberg) -- Hedge funds are about halfway done selling securities to reduce their use of borrowed money and may unload $200 billion more to complete the process, according to managers surveyed by Sanford C. Bernstein & Co.

The survey found that 63 percent of hedge-fund managers said the sale of assets to cut leverage was at least half completed. Twenty-three percent said the process was three- quarters finished, New York-based Bernstein said.

Hedge funds, which borrow money in an effort to increase trading profits, have been forced to unload assets to meet client withdrawals and tighter lending requirements. That has amplified losses in the stock and bond markets. The Standard & Poor’s Index 500 Index fell 38 percent this year through October, while hedge funds lost an average of 16 percent, according to data compiled by Hedge Fund Research Inc.

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"About 16 percent of funds invest in emerging markets".

UltraShort MSCI Emerging Mrkts ProShares (EEV) might be a good long position through the end of the year. It took a 18% haircut today. Opinions?

 

[DavidS]

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"About 16 percent of funds invest in emerging markets".

UltraShort MSCI Emerging Mrkts ProShares (EEV) might be a good long position through the end of the year. It took a 18% haircut today. Opinions?

Dow 4500 anyone?

 

[NOBama]

DOW 4500 would not surprise me at all.

The short ETF's are the strongest equities I can find in the market right now.

Keep an eye on SKF, I think it might go to $450.00, but I'm going to stick to day trading to avoid the downside risk. EEV also, especially if you see bad economic news coming out of China - premarket.

 

[editec]

DOW 4500 would not surprise me at all.

The short ETF's are the strongest equities I can find in the market right now.

Keep an eye on SKF, I think it might go to $450.00, but I'm going to stick to day trading to avoid the downside risk. EEV also, especially if you see bad economic news coming out of China - premarket.

My oh my, how our world has changed in my brief lifetime.

" if you see economic bad news in China" ?!


We have gone from a mation that doesn't even recognize China, from a nation which once felt sorry for China because it couldn't feed itself, into a nation where our investors have to pay attention to China's economic outlook in order to protect themselves from that nation's economy effecting an economic downturn in our own stock market.

Yeah, that Free Trader nonsense has really helped this nation's economy, hasn't it?

 

[NOBama]

Ed, I don't care if the world's going to hell in a hand basket, it's out of my control. Meanwhile, until the clock stops, I’ll do what I can and "go with the flow".

There are only 2 choices here, my friend.

1. Complain about Lemons or
2. Make Lemonade

I choose number 2. Wanna buy a cup?