Investing
Hedge Funds Cut Risk, Betting Stock Bounce Is a Bear-Market Trap
- JPMorgan’s clients trim positions in both long and short books
- Funds tracked by Goldman see trading flows fall for five weeks
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Professional speculators are sticking to their long-held cautious stance even after the latest equity rally forced them to unwind short trades at one of the fastest paces in years.
Hedge funds that make both bullish and bearish bets have largely avoided adding fresh long positions, despite a second straight monthly advance in the S&P 500 Index, data from Wall Street’s major prime brokers show.