Gold overowned by hedge funds, may see deeper fall: ML
April 8th, 2009
Mary Ann Bartels, Chief Market and Technical Analyst of Merrill Lynch, said hedge funds are facing redemption pressure as investors prefer cash. According to her, there is a need to watch Q2CY09 to get clear picture of redemptions in 2009. She further stated that not all hedge funds are facing net loss and some are receiving funds. There has been recent buying in S&P futures to hedge shorts in financial sector, she added.
She said gold is overowned and may see deeper fall if hedge funds book profits.