Hedge funds have now built the largest short position in U.S. Treasuries in history
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$TLT $AGG Source: Mike Zaccardi, CFA, CMT, MBA
The top 5 hedgefund strategies according to Aurum database as of October 2024 were: 1) Equity long/short - AsiaPac (L/S) stands at 16.9% YTD. 2) Long biased equity stands at 14.2% YTD. 3) Equity long/short - Sector (L/S) stands at 14.2% YTD. 4) Quant - Multi stands at 14.1% YTD. 5) Equity long/short - US (L/S) stands at 12.3% YTD.
Europe’s Treasury holdings have risen by $1.5 trillion with the rest of the world acquiring $1.7 trillion of bonds. On the other hand, China and Japan's holdings have shrunk by ~$500 and ~$100 billion, respectively. Overall, total foreign holdings as a share of outstanding federal debt have dropped from 35% to 24%, near the lowest level in 18 years. This is the consequence of rapidly rising public debt with the supply of Treasuries rising ~$15 trillion over the last decade. Foreign demand for Treasuries cannot keep up with skyrocketing US debt. Source: The Kobeissi Letter