Nomura's McElligott Sees Quants Pivoting to `Max Long' Stocks
- Quant says Fed’s dovish move fuels positioning shift
- Systematic flows may pull in fundamental and retail buyers
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U.S. equity bulls and trend-following quants are no longer sleeping in separate beds after some much-needed therapy from Federal Reserve Chairman Jerome Powell.
Nomura cross-asset macro strategist Charlie McElligott says commodity trading advisers, whom he blamed for exacerbating some of December’s damage to equities, are now flipping back to “max long” U.S. stocks after being short.