Derisking

Deutsche Bank Tells Investors Not To Worry About Its €46 Trillion In Derivatives

"The 46 trillion euros figure sounds gigantic, but it is completely misleading. The real risk is far lower" Deutsche Bank's Chief Risk Officer Stewart Lewis told Welt am Sonntag. There is just one problem with this statement: Lewis made an almost identical promise that "Deutsche Bank is fine" two months ago. As it turned out, it wasn't.

Bond Risk Crashes To 2-Year Lows As VIX Shorts Fold

After 10 straight weeks of increasingly bullish speculative positioning ('longer' stock futures and 'shorter' VIX futures), the last 2 weeks have seen short VIX bets plunge at the fastest rate since pre-Brexit and the Aug 2015 crash. At the same time as this surge to hedging, the day since The Fed's utterly farcical fold have seen bond volatility crash to its lowest in two years.

Spot The "Outlier" Who Bought Stocks In Q2

The slow motion LBO of the market by the market continues, as more debt is issued fund stock buybacks and push stocks briefly, and artificially, higher, even as corporations lever themselves up to all time highs now that the even the merest risk of rising rates has been buried for years to come.

Hedge Funds No Longer Have Any Idea How To Trade This Market

While we sarcastically pointed out back in 2013 that with the Fed (and now every other central bank) as the market's Chief Risk Officer, there is no longer a need for anyone to do fundamental analysis, this has not only come true but the outcome is now is far worse. Because it confirms what we have said all along: not only is there no market left aside from what Central Banks decide will happen to "risk assets" on any given day, but the smart money- both hedge and mutual funds - have now completely lost the plot.

After Three Years, This Remains The Best Trading Strategy

One strategy that has worked unusually well for the last several years is a simple positioning trade of selling the 10 most overweight stocks and buying the 10 most underweight stocks by active managers. This single trade has yielded over 16ppt of alpha year-to-date

What The Biggest Hedge Funds Did In Q1: The Full 13-F Summary

While far less attention is being paid to hedge fund 13F filings, which show a stale representation of equity long stakes among the hedge fund community as of 45 days prior, than in years gone by as a result of increasingly poor performance by the 2 and 20 crowd, they still remain closely watched source of investment ideas but mostly to find out what the new cluster ideas and hedge fund hotel stocks are at any given moment. Here are the highlights from the latest round of 13F filings.