International Herald Tribune- If hedge funds are, as is often claimed, the investment vanguard, their latest moves appear to be telling financial markets it is time to take a break from the trading patterns that have dominated since mid-2007. <\/p>\n
Investment banks have been poring over the latest data on hedge fund positioning from the Commodities Futures Trading Commission and concluded that a number of speculative bets have been changed.<\/p>\n
Société Générale, for example, says long positions on 10-year government bonds have been closed. That is to say, hedge funds are not expecting demand for such bonds to increase and drive yields lower.<\/p>\n
Similarly, hedge funds have sharply cut back their long euro-dollar holdings, meaning they now expect the dollar to strengthen or at least stabilize against the single currency.<\/p>\n