JPMorgan Says Hedge Funds’ Short Covering May Have Further to Go
- Firm’s data show short unwind has yet to reach extreme levels
- Goldman fund clients cut bearish ETF bets by most in 20 months
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Fueling the epic rally in US stocks last week, hedge funds were beating a fast retreat from big bearish positions.
Now, with risk-on exposures still low, the unwinding of shorts may have room to run, according to JPMorgan Chase & Co., a move that would encourage other money managers to chase market gains.