Hedge funds double involvement in markets

The increasing role of hedge funds in global financial markets has been underlined by research this week from Société Générale, which found one quarter of the total open interest in T-bonds is held by the sector, more than double the 12-year average of 12%. Société Générale's research note also found hedge funds had dropped their exposure to currencies, accounting for 20% of the open interest in the dollar/yen cross, compared to 35% at the start of 2004. A reduction in activity by hedge funds in currencies and in commodities was joined by an increasing willingness to be net long equitie...