Hedge Funds’ Trades Are Working Again After Worst Day in History

Stocks beloved by hedge funds jump 4% as large-caps rebound
Institutional investors’ pressure to cut risk may be easing

Watch: Dan David, founder of Wolfpack Research, discusses short selling in markets, government regulation and his outlook for the hedge fund industry. (Source: Bloomberg)

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By Justina Lee and Lu Wang (News)

January 28, 2021 at 7:35 PM UTC

This article is for subscribers only.

It won’t make the retail crowd any happier. But everything that had been making life miserable for institutional investors this week is reversing itself on Thursday.

Bearish wagers beloved by hedge funds notched gains. Wall Street’s most-hated stocks plunged at last. The usual suspects from Amazon.com Inc. to Microsoft Corp. powered large-caps higher.