Translation (HTML preserved, no line breaks introduced): Will hedge fund profit-taking start again from the end of the year this year as well?
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Now, the theme this time isThe movements of hedge funds.
From October onward, the main buyers of Japanese stocks have been foreign investors.
Only in October 2017, purchases of over 2.2 trillion yen worth of physical shares were made.
By the way, the months with large net buying are
November 2016: 1.5 trillion yen
Combined for October and November 2015: 1.1 trillion yen
November 2014: 1.2 trillion yen.
On the other hand, looking at months with net selling
March 2017: ▲1.0 trillion yen
January 2016▲1.0 trillion yen
February 2016: ▲2.0 trillion yen
March 2016: ▲1.9 trillion yen
January 2015: ▲0.9 trillion yen.
In recent years, we can observe a pattern where foreign investors buy in October-November and move to take profits from the beginning of the next year.
This pattern is not driven by long-term funds like pensions, but rather by hedge funds, which have those characteristics.
This recent buying could be favorable if conducted by long-term investors like pensions, but if it’s by hedge funds or other short-term players, caution is warranted.
Because hedge funds pursue profits year by year and also have bonuses that are determined annually, they tend to lock in profits as soon as opportunities arise.
Going forward, from the end of the year into the new year, we need to carefully monitor how much selling by foreign investors (hedge funds) will occur.
Note) The above reflects my personal views and is intended solely to improve financial literacy. It is not created for investment solicitation. Also, although the blog content is based on data from reliable sources, the administrator does not guarantee its accuracy. Final investment decisions are to be made at your own risk.
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