Hedge Funds Reload on Shorts After Rush to Unwind Stock Bets
- Bearish wagers in August already double July’s short covering
- Positioning shift is watched by investors for bottom signals
This article is for subscribers only.
Fast-money stock skeptics who got throttled in July are charging back undaunted.
Hedge funds that make both bullish and bearish equity wagers boosted short sales in eight of the 10 sessions through Monday, according to data compiled by Goldman Sachs Group Inc.’s prime brokerage unit. Halfway into August, the dollar amount of bearish wagers has already more than doubled the volume of positions covered in July, the firm’s team including Vincent Lin found.