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Hedge Funds Boost Value-Stock Exposure to the Highest in Four Years

  • JPMorgan sees little appetite to buy dips in expensive shares
  • Fast money’s net stock exposure drops as software names dumped

Hedge funds are loading up on value shares and dumping expensive names, helping fuel the sharpest stock rotation since March as the Federal Reserve signals its intent to accelerate monetary tightening. 

Long-short equity funds have raised their value exposure relative to growth to the highest in at least four years, data from JPMorgan Chase & Co.’s prime brokerage show. Among quantitative funds, bets on cheaper stocks have surged to the highest in months.