Hedge Funds Slash Risky Bets Ahead of Midterms, CPI Data

  • Pace of degrossing in line with year’s worst: JPMorgan data
  • ‘I’m not willing to take headline risk:’ Reidy at First Growth
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Big speculators, a year along in a frantic campaign of risk reduction, are getting even more cautious ahead of a duo of potential make-or-break market events this week: midterm elections and the government’s inflation report.

Hedge funds that make both bullish and bearish equity wagers just unwound bets at a rate that was in line with the fastest this year, according to data compiled by JPMorgan Chase & Co.’s prime broker using a 20-day rolling window.