Hedge Fund Stock Exposure Is the Highest in at Least Three Years

  • Credit Suisse data show long-short funds up bets on cyclicals
  • Volatile market swings bedevil stock pickers eyeing a bottom
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Hedge funds have seen their net stock exposures jump to the highest in at least three years in a spate of short covering and bullish bets on cyclical companies.

U.S. long-short funds have assumed a more risk-on posture amid the $4.6 trillion trough-to-peak rally across some of the industries most exposed to the coronavirus fallout, according to Credit Suisse Group AG.