Salient to Investors:

Amanda Sneider and David Kostin at Goldman Sachs said:

  • Net long exposure to stocks in hedge funds rose to 52 percent in Q4 2012, matching the 10-year high reached in Q1 2007. AIG became the most-held position, Apple fell to third place.
  • Hedge funds notably reduced holdings of Apple and gold while raising allocations to rallying financials.
  • The average hedge fund returned 8 percent in 2012 versus 16 percent including dividends for the S&P 500, and 14 percent for the average mutual fund focusing on large companies. Hedge funds have returning 3 percent in 2013 through February 8 versus 6.6 percent including dividends for the S&P 500.
  • Hedge funds reduced holdings in the SPDR Gold Trust to the lowest in at least 4 years.

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