What’s a hedge fund to do in this up and down market?
Last week hedgies were selling off S&P 500 contracts after snapping them up the week before, reports ValueWalk. Hedge funds are now holding net long positions on the S&P 500 contracts, after the strong selling, according to Bank of America Merrill Lynch’s Hedge Fund Monitor report.
Funds also increased net long positions to the NASDAQ and decreased short positioning to the Russell. Overall, hedge funds’ long/short market exposure was about 29% net long, compared to the benchmark between 35% and 40%.
Hedge funds did outperform the S&P 500 for the week through June 3. The index was down 0.4%.
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