A Bull Case Is Forming Around Bearishness at Hedge Funds, Quants
- Light positioning viewed as setting stage for market recovery
- Sentiment is souring with Fed hikes fueling recession fears
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The repositioning has been fast and deep among the biggest stewards of investment money, a retreat from risk that may aid the bull case on stocks.
From speculative stock pickers to computer-driven traders, equity exposure has been cut to the bone. Hedge funds that make both bullish and bearish equity wagers have slashed their risky bets to a five-year low, while quantitative strategies have gone outright short, Goldman Sachs Group Inc. said.