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Denko Group is a private equity firm dedicated to providing superior returns on capital. They seek high net return opportunities in all sectors, from high-growth technology and life science companies to recommending competitors funds, while achieving superior returns for investors. They bring together the financial and intellectual capital necessary to create a sharp edge that is focused solely on investor’s confident assurances of outstanding performance. For more information on the Denko Group please visit their website at denkogroup.com.

Denko Group Reports Global Growth in Hedge funds

Hedge funds made a sizable bet on financial stocks in the second quarter, according to a a Denko Group report on world wide hedge-fund holdings.

During the second quarter of 2009, hedge funds increased their ownership in financial stocks by 57.2% to $68.9 billion, compared with the first quarter. The funds now own 4.3% of the sector's market capitalization. That's a historically high level, the report said.

The Denko Group "Hedge Fund Tracking Survey" report adds backs up the industry analyst view that hedge-fund managers thought financials were undervalued during the quarter, after a rough 2008 and start to 2009. Hedge funds' surge into financial stocks explains some of the second-quarter price increases in these stocks.

Denko's research, which looks at hedge funds' end-of-quarter 13-F filings with the Securities and Exchange Commission, suggests that hedge funds' larger exposure was from buying in the open market, participation in equity raises, and short covering.

Net short exposure of financials rose only 6.8% to $58 billion, while long exposure increased 61% to $73 billion. Hedge funds were net long financials position at the end of the second quarter, after being net short in the first.

By the second quarter's end, hedge funds owned 17% of Regions, up from just 3% at the end of the first quarter. Redemptions at hedge funds have eased, which means fewer hedge funds have been forced to sell stocks they might have preferred holding.

Denko Group is a private equity firm dedicated to providing superior returns on capital. They seek high net return opportunities in all sectors, from high-growth technology and life science companies to recommending competitors funds, while achieving superior returns for investors. They bring together the financial and intellectual capital necessary to create a sharp edge that is focused solely on investor’s confident assurances of outstanding performance. For more information on the Denko Group please visit their website at denkogroup.com.

You should not do, or refrain from doing, anything based on the information provided in this release without first obtaining professional advice from your financial advisor. Denko Group believes the information in this release is correct, and it has reasonable grounds for any opinion or recommendation found within, as at the date the relevant part of this release was last updated. However, Denko Group and its directors, employees and agents are not liable for any loss or damage incurred by any person as a result of any error in any information, opinion or recommendation in this release. Nothing in this release is, or should be taken as, an offer, invitation or recommendation to buy or sell any investment in or make any deposit with Denko Group or any other person.

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