Hedges Have Largest Short Position Against Euro Ever

Date: Monday, February 22, 2010
Author: Seeking Alpha

Based on data reported to the CFTC, Societe Generale has released its latest monthly hedge fund report that examines what speculators are buying and selling across various asset classes. SocGen's research indicates that hedge funds have again turned to sellers of U.S. equities, but on a smaller level than before. This is something we saw last week when we noted hedge funds had their lowest net long position in equities since May 2009.

By far the most notable takeaway from the data though is the fact that hedge funds now have the largest short position against the euro ever. €11.5 billion are short the euro, an astonishing figure. This is partially offset by a €4.4 billion long euro position, leaving a net short position of €7.1 billion. This of course is a result of Greek's sovereign issues and weak policy response. In commodities, they see that funds have deleveraged across the board. Overall, deleveraging and de-risking continue to be prevalent themes