Financial Markets: Are Hedge Funds Holding Historic Cash Amounts?

By: Ian Campbell | Tue, Aug 28, 2012
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An article late last week suggests that hedge funds (or at least some hedge funds - the article lacks clarity) currently are holding historic levels of cash in circumstances where they:

While this is interesting, and worth noting if you trade or invest in the financial markets, the article unfortunately does not go to the 'next step' and attempt to quantify what percentage or 'range of percentages' of total amounts under administration that the hedge funds currently are holding in cash. If the number is, say, 5% that is 'no big deal'. On the other hand if the number is 50% that would be 'a huge deal' - and a very clear indicator of current financial markets distrust on the part of the hedge funds. At least as I see things.

I have been unable to find any (what I consider to be) meaningful study or studies that purport to quantify the amount of cash currently being held by hedge funds. If you are aware of any such study please forward the URL to me at info@stockresearchportal.com.

Topical Reference: Hedge funds are betting on disaster, from CNNMoney, Maureen Farrell, August 23, 2012 - reading time 3 minutes.

 


 

Ian Campbell

Author: Ian Campbell

Ian R. Campbell, FCA, FCBV
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Through the Economic Straight Talk Newsletter Ian R. Campbell shares his perspective on the world economy, the financial markets, and natural resources. A recognized business valuation authority, he founded Toronto based Campbell Valuation Partners (1976), Stock Research Portal (2007) a source of resource companies market data and analytic tools, and Economic Straight Talk (2012). The CICBV* annually funds business valuation research in his name**. Contact him at icampbell@srddi.com.
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