Special situation and activist hedge funds reluctant to pile into recovery amid “anaemic” corporate activity 

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Activist hedge funds and certain other special situations strategies are still holding off from piling into longer-term buy-and-hold stocks amid the continued market uncertainty, instead choosing to trade opportunistically around cyclical names recovering from their coronavirus battering.

Managers running special situations funds have made hay in the recent recovery in cyclical names, but “have not shown the same appetite for bargains than in previous sell-offs,” Lyxor Asset Management strategists said this week.

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