Following Donald Trump’s US presidential election win, hedge funds have quickly pivoted toward financial stocks while reducing their exposure to companies in the renewable energy sector, according to a report by Reuters.

Hedge funds betting against Tesla have chalked up paper losses of more than $5bn since Donald Trump’s election victory, as shares in the EV maker surged following the endorsement of Trump by the firm’s CEO Elon Musk, according to a report by Bloomberg.

BlackRock is in preliminary discussions with Millennium Management to explore a potential strategic partnership that could see the world’s largest asset manager take a minority stake in one of the hedge fund industry’s most profitable firms, according to a report by the Financial Times.

Hedge funds have historically performed better when a Democrat is in the White House, according to a report by Reuters citing data released on Tuesday by research firm Hedge Fund Research (HFR), as US voters headed to the polls.

As a tight US election race heads to its conclusion, some hedge funds are pivoting toward currency options that could profit from a weaker dollar in the event of a Kamala Harris presidency, according to a report by Bloomberg citing data from the Depository Trust & Clearing Corp (DTCC).

Global hedge funds are heading into the US presidential election with significantly higher equity leverage in their portfolios than at the start of the year, signalling an increased appetite for risk, according to a report by Bloomberg.

The Singapore dollar is gaining traction as a favoured currency trade for hedge funds and other option investors eyeing the upcoming US presidential election, according to a report by Bloomberg citing data from the Depository Trust & Clearing Corporation.