Trauma Over, Hedge Funds Race Their Bull Market Engines Again
- Long-short ratio hits record high as S&P 500 resumes advance
- Improved performance seen reducing odds of larger de-risking
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After a bloody week battling day traders, professional speculators are ramping up risk again, pushing their equity exposure to the highest level on record.
Hedge funds, which were forced to retreat furiously last week amid a retail-fueled short squeeze, have since been busy adding stocks on both the long and short side of their book. Their gross trading flow jumped on Tuesday at the fastest pace since the bear market bottom in March, according to data compiled by Goldman Sachs Group Inc.’s prime brokerage unit.