The trend towards hedge fund short covering is increasing, a recent report shows, as leverage usage fluctuates among hedge fund strategies. Also see a list of top hedge fund letters Hedge fund short covering seen in stock borrowing Convertible arbitrage strategies have among the largest leverage ratio increases month to date, up 5.67%, a JPMorgan Prime Brokerage report shows, pointing to positioning trends ahead of an expected rate hike. In a questionable market environment for interest rates, and amid comments from Janet Yellen last Friday indicating rates could rise, it is high grade fixed income which has reduced leverage the…
JPMorgan Prime Brokerage Report Shows Hedge Fund Short Covering
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.