Hedge funds are maintaining their bearish stance on equity markets despite the recent stock market rally prompting them to unwind short bets at a rapid rate, according to a report by Bloomberg.
Hedge funds are maintaining their bearish stance on equity markets despite the recent stock market rally prompting them to unwind short bets at a rapid rate, according to a report by Bloomberg.
The report cites data from major prime brokers as revealing that managers have largely avoided adding new long positions to their portfolios despite two consecutive months of S&P 500 gains.
JPMorgan Chase & Co clients have reduced both long and short bets, reversing all the risky exposures taken on between late August and the end of September, while At Goldman Sachs Group Inc, hedge funds saw their combined trading flows fall for a fifth straight week.
As well as the data from both companies, separate surveys from 22V Research and Renaissance Macro Research show the majority of their clients believe the recent bounce will be short-lived.
