Hedge Funds ‘Throwing In Towel’ on Stocks as Rally Forces Unwind
- Last week’s de-grossing was fastest since 2021’s short squeeze
- Sentiment offers better guide on markets amid murky economy
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For stock-picking hedge funds coping with 2023’s loopy markets, risks are starting to outweigh the rewards.
Pro managers who make both bullish and bearish equity wagers last week slashed positions on both sides of their book, also known as de-grossing, according to data compiled by JPMorgan Chase & Co.’s prime brokerage unit. The rush to tweak positions was frantic enough to push total client stock flows to the highest level since the retail-fomented short squeeze in 2021.