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Short exposure has decreased-Peter Laurelli

Monday, April 20, 2015 - 03:29

eVestment's Peter Laurelli talks about what his firm is seeing in terms of investment flows, including short selling trends as the market continues to trend upwards without much volatility.

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Take your pay Netflix shake shack so if kitchen betting against the number of high profile high flyers and frankly. The market in general has been a disaster for many short sellers. Let's talk more about exactly when it's while with Peter a rally here is vice president of research at the investment great having you. Thanks for having our explain to me what exactly US track and what you're seeing. So investment. It. Guess reported there about 23. Trillion in institutional. Assets. That's in the traditional sign on the alternatives that we get report about two trillion of to our hedge fund assets. So we can see what institutional investors and count it as a hedge fund our. Are actively interest that OK as to what it what you see. Well one main theme that's been in place for for a couple of years as US equities have continued there and they're kind of consistent drives we've seen. Investors removing a lot of money from from there US. Equity. Exposures. That money's been. Going on the traditional side to the add to global equities to Japan to that you Fiat quitting but we've also seen a fair argument to the hedge fund space. But me credit side adults also on the also out of equities offered a premium primary place last year the groups on that. About 36 billion any lessons Alec so. Other shorts on that's been going on in this I imagine they're the number of stocks in the market in general. Is there a sense that the short selling it the interest and it is kind of waning that people are getting fed up that there just isn't interested they're used to be. Entering a market. Dedicated short selling has always been a relatively small portion of the overall industry. That the interest in that segment tends to come and go based on or near term perspectives it is more of a tactical position and we've seen him near term interest hasn't. Hasn't been there. One thing we can also look at bill are the exposures. The of the launch victory fund report to us that we know that for instance long exposure has been declining. Overlaps. Actually threat 2014 that's indication that even from those that maintain long biases the overall interest in being. Net long the market has declined. So based. It does but in turn has that translated into them being short more being cached on the sidelines because he sure has been costly for a lot of people. It short exposure has decreased actually overall market exposures decrees. That's an indication that being short is difficult. But also being. Overly long is is not a desired option. So then what do you think her along on tour I think he's the car. February march we've seen interest come back so well flows for the year our net flat overall there's interest in the space. What are the issues that are totally watch for is volatility marked more volatile and a better shot making me. But yet the market has has not get her out so what are UC. Well the standards that have volatility has shown. There's not much there. That I think is being driven buying global settlement policy it's one major factor. That is not. Necessarily stop any time soon thank you so much fear. Our thanks to Peter at the rally at.

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Short exposure has decreased-Peter Laurelli

Monday, April 20, 2015 - 03:29