Citadel Securities Sees Systematic Funds Ramping Up Stock-Buying

Fast-money investors have the capacity to increase their exposure to US equities, according to Scott Rubner of Citadel Securities, offering further support for a rally that has taken stocks to record levels.

Systematic funds — which typically let factors such as volatility or momentum dictate their exposure to risk — have increased their stock positioning this month, as the S&P 500 Index extended a rebound from its April lows. Rubner, the firm’s head of equity and equity derivatives strategy, argues that such funds have plenty of firepower left to buy equities and will likely keep doing so if volatility stays subdued.