Five ETFs that Hedge Funds Like in 2016

An ETF that saw a boost in popularity among the investors in our database is iShares iBoxx $ High Yid Corp Bond (ETF) (NYSEARCA:HYG). During the last three months of 2015, the number of funds bullish on HYG surged by 23 to 35, while the aggregate value of holdings appreciated to $1.60 billion from $764.85 million. HYG tracks the performance of the Markit iBoxx USD Liquid High Yield Index, which consists of liquid US dollar-denominated high-yield corporate bonds. Generally, investing in high-yield bonds is risky, which is why many investors prefer to buy ETFs that offer diversification across different high-yield bonds. iShares iBoxx $ High Yid Corp Bond (ETF) (NYSEARCA:HYG) is down by more than 9% over the last year and it has around $16 billion in assets. In addition, it sports a 12-month yield of 6.05% and its largest shares are represented by ‘B’ and ‘BB’ quality bonds. Among the funds in our database, Ken Fisher’s Fisher Asset Management owns 2.39 million shares of iShares iBoxx $ High Yid Corp Bond (ETF) (NYSEARCA:HYG).

On the other hand, smart money investors were dumping SPDR Gold Trust (ETF) (NYSEARCA:GLD) during the last three months of 2015, which is another sign that investors may be confident in the equity markets. At the end of December, 35 funds among those we track held shares of SPDR Gold Trust (ETF) (NYSEARCA:GLD), versus 52 funds a quarter earlier, while the total value of their positions slid to $4.74 billion from $6.46 billion. However, over the last 12 months, GLD has climbed by almost 7% amid an overall market decline and fears of further turmoil. Since the beginning of 2015, the concern among investors intensified and GLD has gained over 18%. After the ECB announced more stimulus, the US dollar declined, while the euro soared, which might also push GLD further in the near-term. At this point, with the current uncertainty Gold is expected to rally, but, again, if the Fed decides to raise interest rates and signs of inflation appear on the horizon, SPDR Gold Trust (ETF) (NYSEARCA:GLD)  could be under pressure. Among the funds we track, John Paulson‘s Paulson & Co owns 5.78 million shares of GLD, while Stanley Druckenmiller’s Duquesne Capital holds ‘Call’ options underlying 2.88 million shares.