Hedge Funds Overweight On The Energy Sector; Exposure Rises In Q3

The latest ‘Hedge Fund Trend Monitor’ study from Amanda Sneider, David J. Kostin, Stuart Kaiser, Ben Snider, Rima Reddy and Aaron Woodside of Goldman Sachs Portfolio Research says hedge funds have increased their exposure to the energy sector.

During 3Q 2013, average hedge fund long allocation to Energy rose by about 66 bp. It is now 185 bp overweight relative to the Russell 3000 (11% vs. 9%), as seen in the table below (orange box).

However, Goldman Sachs also compiled a view on hedge funds’ net positions by combining $1.1T worth of single-stock and ETF long holdings in 13-F filings of 783 hedge funds with an estimate of hedge...