Hedge funds have increased their equity exposure, getting closer to a 50% allocation according to research by International Strategy & Investment. It’s been widely discussed the under-performance by hedge funds, so it’s no surprise they have bumped up their equity exposure going into the last few months of the year.
From Barron’s:
“Hedge funds are coming from defensive positions, and are now seeing stimulus coming everywhere, a string of surprisingly positive data, and the stock market regaining momentum. So, this week they moved their net exposures up again — although they’re still just shy of 50.0%. And having lagged, managers may want to add exposure going into year end,” the firm reports in its Daily Economic Report widely read by the Street’s cognoscenti.
Source: ISI: Hedge Funds Play Catch Up, Boost Equities to Near 50% (Barron’s)
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