Hedge Funds Cut High-Conviction Stock Bets to Seven-Year Low
- That helps fast money weather the latest tech-led market rout
- Prime broker data show no panic selling during Tuesday selloff
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In a stock market where no bounce can be trusted and single-name blow-ups are multiplying, professional speculators are ditching some of their long-held darlings.
That’s a regime shift for hedge funds who have famously crowded into the same companies over the past decade. Now the cohort’s exposure to the 50 most-popular stocks has just collapsed to the lowest since 2015 in Morgan Stanley’s prime brokerage data.