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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

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.