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During Week Ended Wednesday, September 3, 2008, TrimTabs Estimates All Equity Mutual Funds Post Outflows of $4,790 million.
Sausalito, CA - September 4th, 2008 - TrimTabs Investment Research estimates that all equity mutual funds posted an outflow of $4,790 million during the week ended Wednesday, September 3, versus an outflow of $511 million during the previous week.
Equity funds that invest primarily in U.S. stocks posted an outflow of $2,188 million versus an inflow of $509 million during the previous week. Equity funds that invest primarily in non-U.S. stocks posted an outflow of $2,602 million versus an outflow of $1,019 million during the previous week. In addition, bond funds posted outflows of $207 million versus inflows of $1,745 million during the previous week and hybrid funds had outflows of $78 million versus inflows of $670 million during the previous week.
Separately, TrimTabs reports that exchange-traded funds (ETFs) that invest in U.S. stocks had inflows of $6,042 million during the last week versus outflows of $1,484 million during the previous week. ETFs that invest in non-U.S. stocks had outflows of $91 million versus outflows of $659 million during the previous week.
TrimTabs Investment Research is the only independent research service that publishes detailed daily coverage of U.S. stock market liquidity--including mutual fund flows and exchange-traded fund flows--as well as weekly withheld income and employment tax collections. Founded by Charles Biderman, TrimTabs has provided institutional investors with trading strategies since 1990.
See www.TrimTabs.com
CONTACT:
Conrad Gann
Chief Operating Officer
TrimTabs Investment Research
+1 415-331-4400
conrad.gann@trimtabs.com
During Week Ended Wednesday, August 27th, 2008, TrimTabs Estimates All Equity Mutual Funds Post Outflows of $511 million.
Sausalito, CA - August 28th, 2008 - TrimTabs Investment Research estimates that all equity mutual funds posted an outflow of $511 million during the week ended Wednesday, August 27, versus an outflow of $5,135 million during the previous week.
Equity funds that invest primarily in U.S. stocks posted an inflow of $509 million versus an outflow of $2,009 million during the previous week. Equity funds that invest primarily in non-U.S. stocks posted an outflow of $1,019 million versus an outflow of $3,127 million during the previous week. In addition, bond funds posted inflows of $1,745 million versus inflows of $387 million during the previous week and hybrid funds had inflows of $670 million versus inflows of $148 million during the previous week.
Separately, TrimTabs reports that exchange-traded funds (ETFs) that invest in U.S. stocks had outflows of $1,484 million during the last week versus outflows of $345 million during the previous week. ETFs that invest in non-U.S. stocks had outflows of $659 million versus outflows of $680 million during the previous week.
TrimTabs Investment Research is the only independent research service
that publishes detailed daily coverage of U.S. stock market liquidity,
including mutual funds and exchange traded funds, as well as weekly
withheld income and employment tax collections. Founded by Charles
Biderman, TrimTabs has provided institutional investors - including
hedge fund managers, market strategists, and portfolio managers - with
trading strategies since 1990. TrimTabs liquidity research is unique.
It is a macro timing tool to predict the direction of the stock
market.
See www.TrimTabs.com
CONTACT:
Charles Biderman
Chief Executive Officer
415 331 4400
Charles.Biderman@TrimTabs.com
During Week Ended Wednesday, August 20, 2008, TrimTabs Estimates All Equity Mutual Funds Post Outflows of $5,135 million.
Sausalito, CA - August 21st, 2008 - TrimTabs Investment Research estimates that all equity mutual funds posted an outflow of $5,135 million during the week ended Wednesday, August 20, versus an outflow of $3,932 million during the previous week.
Equity funds that invest primarily in U.S. stocks posted an outflow of $2,009 million versus an outflow of $297 million during the previous week. Equity funds that invest primarily in non-U.S. stocks posted an outflow of $3,127 million versus an outflow of $3,635 million during the previous week. In addition, bond funds posted inflows of $387 million versus inflows of $1,181 million during the previous week and hybrid funds had inflows of $148 million versus inflows of $454 million during the previous week.
Separately, TrimTabs reports that exchange-traded funds (ETFs) that invest in U.S. stocks had outflows of $345 million during the last week versus inflows of $4,786 million during the previous week. ETFs that invest in non-U.S. stocks had outflows of $680 million versus inflows of $171 million during the previous week.
TrimTabs Investment Research is the only independent research service
that publishes detailed daily coverage of U.S. stock market liquidity,
including mutual funds and exchange traded funds, as well as weekly
withheld income and employment tax collections. Founded by Charles
Biderman, TrimTabs has provided institutional investors - including
hedge fund managers, market strategists, and portfolio managers - with
trading strategies since 1990. TrimTabs liquidity research is unique.
It is a macro timing tool to predict the direction of the stock
market.
See www.TrimTabs.com
CONTACT:
Charles Biderman
Chief Executive Officer
415 331 4400
Charles.Biderman@TrimTabs.com
During Week Ended Wednesday, August 13, 2008, TrimTabs Estimates All Equity Mutual Funds Post Outflows of $3,932 million.
Sausalito, CA - August 14th, 2008- TrimTabs Investment Research estimates that all equity mutual funds posted an outflow of $3,932 million during the week ended Wednesday, August 13, versus an outflow of $2,987 million during the previous week.
Equity funds that invest primarily in U.S. stocks posted an outflow of $297 million versus an outflow of $447 million during the previous week. Equity funds that invest primarily in non-U.S. stocks posted an outflow of $3,635 million versus an outflow of $2,540 million during the previous week. In addition, bond funds posted inflows of $1,181 million versus outflows of $531 million during the previous week and hybrid funds had inflows of $454 million versus outflows of $204 million during the previous week.
Separately, TrimTabs reports that exchange-traded funds (ETFs) that invest in U.S. stocks had inflows of $4,786 million during the last week versus inflows of $5,042 million during the previous week. ETFs that invest in non-U.S. stocks had inflows of $171 million versus inflows of $238 million during the previous week.
TrimTabs Investment Research is the only independent research service
that publishes detailed daily coverage of U.S. stock market liquidity,
including mutual funds and exchange traded funds, as well as weekly
withheld income and employment tax collections. Founded by Charles
Biderman, TrimTabs has provided institutional investors - including
hedge fund managers, market strategists, and portfolio managers - with
trading strategies since 1990. TrimTabs liquidity research is unique.
It is a macro timing tool to predict the direction of the stock
market.
See www.TrimTabs.com
CONTACT:
Charles Biderman
Chief Executive Officer
415 331 4400
Charles.Biderman@TrimTabs.com
Hedge Funds Get $15.7 Billion in June, Little Changed from Inflow of $16.9 Billion in May. Hedge Fund Inflows in First Half of 2008 Down 58% from Year-Ago Period.
Sausalito, CA – August 12, 2008 - TrimTabs Investment Research and BarclayHedge today reported that all hedge funds posted an estimated inflow of $15.7 billion in June, nearly equal to the inflow of $16.9 billion in May.
"Hedge funds have been attracting much less money as their performance has deteriorated in absolute terms," said Sol Waksman, Chief Executive Officer of BarclayHedge. "The $79.6 billion inflow into hedge funds in the first half of 2008 is down 58% from the same period a year earlier."
In a research note, TrimTabs and BarclayHedge calculated that the hedge fund industry delivered a return of only 1.1% in the first half of 2008, the lowest six-month return since the BarclayHedge database begins in 2000.
Breaking out the $15.7 billion inflow into hedge funds in June, hedge funds received $10.6 billion in direct investments, while funds of hedge funds took in $5.1 billion. Commodity trading advisors received $3.9 billion in June, more than reversing the outflow of $2.3 billion in May.
"Commodity trading advisors raked in a whopping $27.3 billion in the first half of 2008, which is equal to 4.9% of their assets,” said Conrad Gann, Chief Operating Officer of TrimTabs. “With investors pumping so much money into commodity-related investments, no wonder commodity prices hit record highs earlier this summer."
The TrimTabs/BarclayHedge database tracks hedge fund flows on a monthly basis. The TrimTabs/BarclayHedge Hedge Fund Flow Report provides detailed analysis of those flows as well as relevant topical studies. This month’s study assesses the relationship between hedge fund flows and hedge funds returns. For further information, please visit http://www.barclayhedge.com/products/trimtabs-hedge-fund-flow-report.html.
TrimTabs Investment Research is the only independent research service that publishes detailed daily coverage of U.S. stock market liquidity--including mutual fund flows and exchange-traded fund flows--as well as weekly withheld income and employment tax collections. Founded by Charles Biderman, TrimTabs has provided institutional investors with trading strategies since 1990. For more information, please visit www.TrimTabs.com.
Contact Information:
Alison Simard
Media Relations
Stern & Company
+1 323-650-7117
arsimard@sternco.com
Conrad Gann
Chief Operating Officer
TrimTabs Investment Research
+1 415-331-4400
conrad.gann @trimtabs.com
During Week Ended Wednesday, August 6th, 2008, TrimTabs Estimates All Equity Mutual Funds Post Outflows of $2,987 million.
Sausalito, CA - August 7th, 2008 - TrimTabs Investment Research estimates that all equity mutual funds posted an outflow of $2,987 million during the week ended Wednesday, August 6, versus an outflow of $3,092 million during the previous week.
Equity funds that invest primarily in U.S. stocks posted an outflow of $447 million versus an outflow of $2,568 million during the previous week. Equity funds that invest primarily in non-U.S. stocks posted an outflow of $2,540 million versus an outflow of $524 million during the previous week. In addition, bond funds posted outflows of $531 million versus inflows of $1,824 million during the previous week and hybrid funds had outflows of $204 million versus inflows of $700 million during the previous week.
Separately, TrimTabs reports that exchange-traded funds (ETFs) that invest in U.S. stocks had inflows of $5,042 million during the last week versus inflows of $5,318 million during the previous week. ETFs that invest in non-U.S. stocks had inflows of $238 million versus inflows of $1,077 million during the previous week.
TrimTabs Investment Research is the only independent research service that publishes detailed daily coverage of U.S. stock market liquidity, including mutual funds and exchange traded funds, as well as weekly withheld income and employment tax collections. Founded by Charles Biderman, TrimTabs has provided institutional investors - including hedge fund managers, market strategists, and portfolio managers - with trading strategies since 1990. TrimTabs liquidity research is unique. It is a macro timing tool to predict the direction of the stock market.
See www.TrimTabs.com
CONTACT:
Charles Biderman
Chief Executive Officer
415 331 4400
Charles.Biderman@TrimTabs.com
TrimTabs Reports Withholding Analysis Indicates U.S. Economy Lost 169,000 Jobs in July. BLS Estimate of Only 51,000 Jobs Lost Due to Faulty Survey Technique. U.S. Experiences Largest Employment Decline since March 2003
Sausalito, CA – July 30, 2008Job losses hit their highest level since March 2003 and appear to be accelerating, TrimTabs Investment Research reported today. That is in contrast to 51,000 job losses estimated by the Bureau of Labor Statistics.
The U.S. economy lost 169,000 jobs in July, according to TrimTabs’ analysis of daily income tax deposits to the U.S. Treasury from all salaried U.S. employees.
"Job losses accelerated in the last two weeks of June and could have topped 300,000 if crude oil prices had not retreated from $147 per barrel", said Charles Biderman, Chief Executive Officer of TrimTabs.
TrimTabs’ estimates the U.S. economy has lost 734,000 jobs in 2008, and expects job losses to worsen in coming months. Other indicators confirm the recent deterioration of the labor market. The wages of all U.S. workers on payrolls rose only 1.6% year-over-year in July, well below the 3.1% year-over-year level indicative of job growth. Weekly unemployment claims jumped above 400,000 last week, and continuing unemployment claims hovered near the highest level since February 2004.
"What investors don’t realize is that current oil prices of $127 per barrel are 31% higher than the inflation-adjusted peak of $97 per barrel in the recession of the early 1980s," Biderman said. "We are just beginning to feel the pain of high oil prices which means hefty job losses are going to be with us well into Fall."
TrimTabs Investment Research is the only independent research service that publishes detailed daily coverage of U.S. stock market liquidity--including mutual fund flows and exchange-traded fund flows--as well as weekly withheld income and employment tax collections. Founded by Charles Biderman, TrimTabs has provided institutional investors with trading strategies since 1990. For more information, please visit www.TrimTabs.com.
Contact Information:
Alison Simard
Media Relations
Stern & Company
+1 323-650-7117
arsimard@sternco.com
Charles Biderman
TrimTabs Investment Research
+1 707-527-1501
Charles.Biderman@TrimTabs.com
During Week Ended Wednesday, July 30, 2008, TrimTabs Estimates All Equity Mutual Funds Post Outflows of $3,092 million.
Sausalito, CA - July 31st, 2008 - TrimTabs Investment Research estimates that all equity mutual funds posted an outflow of $3,092 million during the week ended Wednesday, July 30, versus an inflow of $2,391 million during the previous week.
Equity funds that invest primarily in U.S. stocks posted an outflow of $2,568 million versus an inflow of $777 million during the previous week. Equity funds that invest primarily in non-U.S. stocks posted an outflow of $524 million versus an inflow of $1,614 million during the previous week. In addition, bond funds posted inflows of $1,824 million versus outflows of $3,413 million during the previous week and hybrid funds had inflows of $700 million versus outflows of $1,376 million during the previous week.
Separately, TrimTabs reports that exchange-traded funds (ETFs) that invest in U.S. stocks had inflows of $5,318 million during the last week versus outflows of $7,258 million during the previous week. ETFs that invest in non-U.S. stocks had inflows of $1,077 million versus inflows of $2,042 million during the previous week.
TrimTabs Investment Research is the only independent research service
that publishes detailed daily coverage of U.S. stock market liquidity,
including mutual funds and exchange traded funds, as well as weekly
withheld income and employment tax collections. Founded by Charles
Biderman, TrimTabs has provided institutional investors - including
hedge fund managers, market strategists, and portfolio managers - with
trading strategies since 1990. TrimTabs liquidity research is unique.
It is a macro timing tool to predict the direction of the stock
market.
See www.TrimTabs.com
CONTACT:
Charles Biderman
Chief Executive Officer
415 331 4400
Charles.Biderman@TrimTabs.com
During Week Ended Wednesday, July 23, 2008, TrimTabs Estimates All Equity Mutual Funds Post Inflows of $2,391 million.
Sausalito, CA – July 24, 2008 - TrimTabs Investment Research estimates that all equity mutual funds posted an inflow of $2,391 million during the week ended Wednesday, July 23, versus an outflow of $3,821 million during the previous week.
Equity funds that invest primarily in U.S. stocks posted an inflow of $777 million versus an outflow of $3,004 million during the previous week. Equity funds that invest primarily in non-U.S. stocks posted an inflow of $1,614 million versus an outflow of $818 million during the previous week. In addition, bond funds posted outflows of $3,413 million versus outflows of $1,274 million during the previous week and hybrid funds had outflows of $1,376 million versus outflows of $514 million during the previous week.
Separately, TrimTabs reports that exchange-traded funds (ETFs) that invest in U.S. stocks had outflows of $7,258 million during the last week versus inflows of $6,356 million during the previous week. ETFs that invest in non-U.S. stocks had inflows of $2,042 million versus outflows of $194 million during the previous week.
TrimTabs Investment Research is the only independent research service
that publishes detailed daily coverage of U.S. stock market liquidity,
including mutual funds and exchange traded funds, as well as weekly
withheld income and employment tax collections. Founded by Charles
Biderman, TrimTabs has provided institutional investors - including
hedge fund managers, market strategists, and portfolio managers - with
trading strategies since 1990. TrimTabs liquidity research is unique.
It is a macro timing tool to predict the direction of the stock
market.
See www.TrimTabs.com
CONTACT:
Charles Biderman
Chief Executive Officer
415 331 4400
Charles.Biderman@TrimTabs.com
During Week Ended Wednesday, July 16th, TrimTabs Estimates All Equity Mutual Funds Post Outflows of $3,821 million.
Sausalito, CA - July 17th, 2008-TrimTabs Investment Research estimates that all equity mutual funds posted an outflow of $3,821 million during the week ended Wednesday, July 16, versus an outflow of $7,078 million during the previous week.
Equity funds that invest primarily in U.S. stocks posted an outflow of $3,004 million versus an outflow of $5,568 million during the previous week. Equity funds that invest primarily in non-U.S. stocks posted an outflow of $818 million versus an outflow of $1,511 million during the previous week. In addition, bond funds posted outflows of $1,274 million versus inflows of $1,706 million during the previous week and hybrid funds had outflows of $514 million versus inflows of $688 million during the previous week.
Separately, TrimTabs reports that exchange-traded funds (ETFs) that invest in U.S. stocks had inflows of $6,356 million during the last week versus inflows of $3,872 million during the previous week. ETFs that invest in non-U.S. stocks had outflows of $194 million versus outflows of $810 million during the previous week.
TrimTabs Investment Research is the only independent research service
that publishes detailed daily coverage of U.S. stock market liquidity,
including mutual funds and exchange traded funds, as well as weekly
withheld income and employment tax collections. Founded by Charles
Biderman, TrimTabs has provided institutional investors - including
hedge fund managers, market strategists, and portfolio managers - with
trading strategies since 1990. TrimTabs liquidity research is unique.
It is a macro timing tool to predict the direction of the stock
market.
See www.TrimTabs.com
CONTACT:
Charles Biderman
Chief Executive Officer
415 331 4400
Charles.Biderman@TrimTabs.com
Hedge Funds Get $16.9 Billion in May, Up from $1.0 Billion in April. Hedge Fund Industry Outperforms S&P 500 by 6.1% in First Five Months of 2008.
Sausalito, CA - July 14th, 2008 - TrimTabs Investment Research estimates that hedge funds received an estimated $16.9 billion (1.0% of assets) in May and $61.4 billion (3.4% of assets) year-to-date.
Inflows into hedge funds remain weak compared to previous years even though the hedge fund industry outperformed the S&P 500 by 6.1% in the first five months of 2008. Hedge funds delivered returns of 2.6% in May, their best month since October 2007. The inflow into hedge funds in the first five months of 2008 ($61.4 billion) was less than half of the inflow in the first five months of 2007 ($137.3 billion), and it was below the inflow in the first five months of each of the previous four years.
Breaking out May’s $16.9 billion inflow into hedge funds, direct investors added $10.6 billion (0.6% of assets) to hedge funds, while funds of hedge funds received $6.4 billion (0.9% of assets).
TrimTabs Investment Research is the only independent research service
that publishes detailed daily coverage of U.S. stock market liquidity,
including mutual funds and exchange traded funds, as well as weekly
withheld income and employment tax collections. Founded by Charles
Biderman, TrimTabs has provided institutional investors - including
hedge fund managers, market strategists, and portfolio managers - with
trading strategies since 1990. TrimTabs liquidity research is unique.
It is a macro timing tool to predict the direction of the stock
market.
See www.TrimTabs.com
CONTACT:
Charles Biderman
Chief Executive Officer
415 331 4400
Charles.Biderman@TrimTabs.com
During Week Ended Wednesday, July 9, 2008, TrimTabs Estimates All Equity Mutual Funds Post Outflows of $7,078 million.
Sausalito, CA - July 10th, 2008 - TrimTabs Investment Research estimates that all equity mutual funds posted an outflow of $7,078 million during the week ended Wednesday, July 9, versus an outflow of $13,279 million during the previous week.
Equity funds that invest primarily in U.S. stocks posted an outflow of $5,568 million versus an outflow of $8,899 million during the previous week. Equity funds that invest primarily in non-U.S. stocks posted an outflow of $1,511 million versus an outflow of $4,380 million during the previous week. In addition, bond funds posted inflows of $1,706 million versus inflows of $2,921 million during the previous week and hybrid funds had inflows of $688 million versus inflows of $1,178 million during the previous week.
Separately, TrimTabs reports that exchange-traded funds (ETFs) that invest in U.S. stocks had inflows of $3,872 million during the last week versus inflows of $5,254 million during the previous week. ETFs that invest in non-U.S. stocks had outflows of $810 million versus outflows of $719 million during the previous week.
TrimTabs Investment Research is the only independent research service
that publishes detailed daily coverage of U.S. stock market liquidity,
including mutual funds and exchange traded funds, as well as weekly
withheld income and employment tax collections. Founded by Charles
Biderman, TrimTabs has provided institutional investors - including
hedge fund managers, market strategists, and portfolio managers - with
trading strategies since 1990. TrimTabs liquidity research is unique.
It is a macro timing tool to predict the direction of the stock
market.
See www.TrimTabs.com
CONTACT:
Charles Biderman
Chief Executive Officer
415 331 4400
Charles.Biderman@TrimTabs.com
TrimTabs Initiates Coverage of Flows of Equity Index Futures Contracts
De-Leveraging by Hedge Funds in Last Five Quarters Exacerbated Market Slump.
Sausalito, CA – July 2, 2008 – TrimTabs Investment Research now tracks the daily flows of S&P 500 futures contracts and e-minis. These two types of contracts, which have a notional value of $322 billion, provide levered exposure to the returns of the S&P 500.
"The flows of equity futures contracts are a valuable tool to assess the risk appetite of investors," said Conrad Gann, Chief Operating Officer of TrimTabs. "All else being equal, rising open interest on equity futures contracts indicates more market participants are willing to make leveraged bets on equities."
In a research note, TrimTabs explained that large inflows into equity futures contracts are associated with increased market volatility and can be an early signal of market tops.
"A whopping $71 billion poured into S&P 500 futures contracts and e-minis from 2004 through 2006," said Vincent Déluard, Global Equity Strategist at TrimTabs. "Once the stock market sold off in August 2007, hedge funds scaled back on leverage, further depressing stock prices."
According to TrimTabs, S&P 500 futures contracts and e-minis posted outflows totaling $15.7 billion in the past five quarters, the largest outflows since the contracts started trading.
The daily flows of S&P 500 futures contracts and e-minis are distributed to TrimTabs clients who receive the Daily Liquidity Report. For additional information about this product, please contact Service@TrimTabs.com.
TrimTabs plans to expand its coverage of futures flows to other equity index futures and commodity futures contracts.
TrimTabs Investment Research is the only independent research service that publishes detailed daily coverage of U.S. stock market liquidity--including mutual fund flows and exchange-traded fund flows--as well as weekly withheld income and employment tax collections. Founded by Charles Biderman, TrimTabs has provided institutional investors with trading strategies since 1990. For more information, please visit www.TrimTabs.com.
Contact Information:
Vincent Déluard
TrimTabs Investment Research
+1 415-331-4400
Vincent.Deluard@TrimTabs.com
Conrad Gann
TrimTabs Investment Research
+1 415-331-4400
Conrad.Gann@TrimTabs.com
TrimTabs Reports U.S. Economy Lost 133,000 Jobs in June
Job Losses Accelerated in Late June and Could Top 300,000 in July
Skyrocketing Oil Prices Responsible for Largest Employment Decline in Five Months
Sausalito, CA – June 30, 2008 – Job losses hit their highest level in five months in June and appear to be accelerating, TrimTabs Investment Research reported today.
The U.S. economy lost 133,000 jobs in June, according to TrimTabs’ analysis of daily income tax deposits to the U.S. Treasury from all salaried U.S. employees. Job losses accelerated in the last two weeks of June and could top 300,000 in July if the downward trend continues, TrimTabs estimates.
"The 40% surge in crude oil prices in the past two months is destroying the economy," said Charles Biderman, Chief Executive Officer of TrimTabs. "The oil price spike could not have come at a worse time because the credit crunch and the housing slump were already weakening the economy."
TrimTabs’ estimates the U.S. economy has lost 565,000 jobs in 2008, and other indicators confirm the recent deterioration of the labor market. The TrimTabs Online Job Postings Index is down 10% year-over-year and is near its lowest level since January. Also, continuing unemployment claims have increased to the highest level since February 2004.
"Soaring oil prices driven by rampant speculation have put the economy in a vice-like squeeze," Biderman said. "Unless oil prices drop, the U.S. economy is likely to experience its deepest slump since the 1970s."
TrimTabs Investment Research is the only independent research service that publishes detailed daily coverage of U.S. stock market liquidity--including mutual fund flows and exchange-traded fund flows--as well as weekly withheld income and employment tax collections. Founded by Charles Biderman, TrimTabs has provided institutional investors with trading strategies since 1990. For more information, please visit www.TrimTabs.com.
Contact Information:
Alison Simard
Media Relations
Stern & Company
+1 323-650-7117
arsimard@sternco.com
Charles Biderman
TrimTabs Investment Research
+1 707-527-1501
Charles.Biderman@TrimTabs.com
TrimTabs Says Oil Futures Speculation Will Destroy World Economy Unless Regulators and Major Oil Consumers Take Aggressive Action Remedies Include Increasing Margin Requirement for Oil Futures, Disclosing Major Oil Futures Holders, and Concerted Government Effort to Short Oil Futures
Sausalito, CA – June 19, 2008 – Stratospheric crude oil prices precipitated by speculation are bankrupting the U.S. and will trigger a global financial disaster unless regulators or oil consumers take aggressive action, TrimTabs Investment Research said today.
"At current oil prices, the U.S. is going broke, and the rest of the world is sure to follow,” said Charles Biderman, Chief Executive Officer of TrimTabs."
The TrimTabs reports points out that in the oil futures market, investors have to put up no more than $10,000 to control $135,000 of oil. So far this year, commodity trading advisors (CTAs) and commodity exchange-traded funds have received $2 billion per month. If even half of that $2 billion per month were used to go long oil futures, it would be enough to go long 100,000 contracts per month, which is equal to 3% of the open interest on oil futures.
"Open interest could be growing more than 35% per year just from inflows into CTAs and commodity ETFs,” said Biderman. “And that growth does not even count the impact of oil investments through other vehicles by hedge funds and pension funds."
The reports explains that sky-high oil prices are wrecking havoc on the U.S. economy. At $135 per barrel, the U.S. will spend $1.0 trillion per year on oil, which is equal to 15% of the $6.8 trillion in take-home pay of everyone who pays taxes.
"Spending on oil probably accounts for a larger share of take-home pay now than at any time since the 1970s,” said Biderman. “What is happening is not demand destruction, it is a financial disaster."
The report predicts that oil prices would collapse if regulators increased the margin requirement for oil futures to 25% from no more than 7.5% now. But the report downplays the likelihood of such an increase because a higher margin requirement would reduce the profits of commodity exchanges and traders.
TrimTabs offers two solutions to the oil crisis. The first solution is full disclosure of large oil futures holders.
"If institutions must report at least semi-annually what stocks they own, why should they not be required to report the amount of oil futures they are long?" asked Biderman.
The second solution is a concerted effort by major oil users, including governments, to short oil futures.
"The U.S. government has been spending $280 million per month pumping 70,000 barrel of oil per day into salt caverns,” noted Biderman. “Instead of buying oil, why not go short 35,000 oil futures contracts per month at $8,000 per contract?"
"It is insane for the world to go broke while oil traders make fortunes and a handful of gangsters control their national oil production," concluded Biderman.
TrimTabs Investment Research is the only independent research service that publishes detailed daily coverage of U.S. stock market liquidity--including mutual fund flows and exchange-traded fund flows--as well as weekly withheld income and employment tax collections. Founded by Charles Biderman, TrimTabs has provided institutional investors with trading strategies since 1990. For more information, please visit www.TrimTabs.com.
Contact Information:
Alison Simard
Media Relations
Stern & Company
+1 323-650-7117
arsimard@sternco.com
Charles Biderman
TrimTabs Investment Research
+1 707-527-1501
charles.biderman@trimtabs.com
Hedge Funds Lose $5.9 Billion in April, First Outflow Since December 2005.
Commodity Trading Advisors Get Whopping $5.3 Billion (7.3% of Assets) in First Four Months of 2008.
Sausalito, CA - June 9th, 2008-TrimTabs Investment Research and BarclayHedge today reported that all hedge funds posted an estimated outflow of $5.9 billion in April after posting an estimated inflow of $22.0 billion in March. The outflow in April was the first since December 2005 and the largest since October 2001. “April’s outflow from hedge funds was not surprising because hedge funds underperformed the S&P 500 in both March and April,” said Sol Waksman, Chief Executive Officer of BarclayHedge. “Market volatility and weak inflows into funds of hedge funds suggest hedge fund flows were also depressed in May.” Breaking out the $5.9 billion outflow from hedge funds in April, hedge funds lost $9.4 billion directly, while funds of hedge funds took in $3.5 billion. Commodity trading advisors (CTAs) took in $2.2 billion, which was the largest inflow since January 2000.
“April’s outflow shows that hedge funds are not immune to the impact of market sell-offs,” said Conrad Gann, Chief Operating Officer of TrimTabs. “Yet investors pumped $5.3 billion (7.3% of assets) into CTAs in the first four months of 2008. The growing popularity of commodity-oriented ETFs and CTAs could be responsible for the steady rise in commodity prices.”
The TrimTabs/BarclayHedge database tracks hedge fund flows on a monthly basis. The TrimTabs/BarclayHedge Hedge Fund Flow Report provides detailed analysis of those flows as well as relevant topical studies. This month’s study assesses the relationship between hedge fund flows and hedge funds returns. For further information, please visit http://www.barclayhedge.com/products/trimtabs-hedge-fund-flow-report.html.
TrimTabs Investment Research is the only independent research service that publishes detailed daily coverage of U.S. stock market liquidity--including mutual fund flows and exchange-traded fund flows--as well as weekly withheld income and employment tax collections. Founded by Charles Biderman, TrimTabs has provided institutional investors with trading strategies since 1990. For more information, please visit www.TrimTabs.com.
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CONTACT:
Alison Simard
Media Relations
Stern & Company
+1 323-650-7117
arsimard@sternco.com
Conrad Gann
Chief Operating Officer
TrimTabs Investment Research
+1 415-331-4400
conrad.gann@trimtabs.com