Hedge Funds Are Massively Long Gold, Short Copper

Hedge funds’ renewed interest in gold with the strongest net long positions in over two years could prove to be a costly strategy when the Fed actually tightens its policies, suggests Societe Generale. Alain Bokobza and the rest of the team at SocGen’s Global Asset Allocation published their “Hedge Fund Watch” report after tracking hedge fund positions across asset classes, performance and favorite strategies. Brent will fall to $40 According to the SocGen analysts, hedge funds are still hugely long on oil, though SocGen’s commodity strategists anticipate that Brent will fall to $40. The following table depicts hedge funds’ commodities positions: As set…