Fund performance

The net-long position in gold rose 31% to 104,532 futures and options contracts in the week ended Dec. 9, according to U.S. Commodity Futures Trading Commission data. “We are seeing safety trade toward gold,” says Peter Sorrentino, a senior vice president who helps oversee $1.8 billion at Huntington Asset Advisors in Cincinnati.

Research into understanding the human element of investment decisions exposes a flaw that, according to AthenaInvest CEO and director of research Tom Howard, currently exists in active management: despite corporate advertising to the contrary, he says, most fund managers can only be active toward a certain number of picks and fund volume.

As a rout in energy prices spreads to global equities, investors are returning to gold to take cover. Assets in the SPDR Gold Trust, the world’s largest bullion exchange-traded product, rose yesterday at the fastest pace since July. The holdings are up almost 1% in December, snapping four straight months of losses.

Bill Gross’s main bond fund at Janus Capital Group Inc. received an estimated $769 million in new money last month, bringing assets above $1 billion. His Janus Global Unconstrained Bond Fund reported assets of $1.21 billion as of Nov. 28. That’s an increase from $442.9 million from the prior month.

Hedge funds are betting that the oil- price crash is close to ending. Speculators boosted their net-long position in West Texas Intermediate crude by 14% in the week ended Dec. 2, the most in 20 months, U.S. Commodity Futures Trading Commission data show. Short bets contracted by 15% as long wagers expanded 4%.

The industry saw dollar hedge demand strong among ETFs, another insurer acquiring an asset manager and the second ETF provider to offer U.S. investors access to China's onshore bond market.

Corporate bond sales worldwide are poised to set an annual record as soon as this week as companies lock in borrowing costs that forecasters say are bound to rise. Amazon.com., Volkswagen and Alibaba have propelled offerings to $3.96 trillion this year, about $7 billion short of the peak of $3.97 trillion in 2012.

Aberdeen Asset Management, Europe’s largest publicly traded money manager by assets, reported $32 billion of outflows in the full year as investor sentiment toward emerging markets waned.

Asset managers have become consultants to financial advisors seeking help with business development and practice management in an effort to stand out in a crowded marketplace.

BlackRock, the world’s largest provider of ETFs, said the products acted as “shock absorbers” after Bill Gross’s unexpected exit last month from Pimco.

Pimco seeking to stem redemptions after its co-founder Bill Gross left unexpectedly, was dropped as manager of a $6.16 billion strategy offered by a unit of Prudential Financial.

Pimco Says It’s Cooperating in SEC’s Total Return ETF Probe

While many investors have revived their love affair with corporate bonds this year, one stands out: Pacific Investment Management Co.’s Bill Gross.

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