Hedge Funds Cut Stock Leverage at Fastest Pace Since 2020 Crash
- Wall Street prime brokers say clients ramped up short selling
- Bears benefit as the most-shorted stocks led the market rout
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As the cross-asset selloff engulfed Wall Street last week, hedge funds ramped up their bets against stocks while one measure of their market positioning plunged the most since the March 2020 crash.
From retail investors to rules-based systematic traders, appetite for equities is subsiding after a 20% rally this year that’s fueled by euphoria over artificial intelligence.