Funds continued to rotate away from growth stocks and are now more tilted to value than they have been since 2011, according to a Goldman Sachs analysis of 788 hedge funds with$2.6 trillion of gross positions.
Exposure data calculated by Goldman Sachs show hedge fund net leverage is now at its lowest level since summer 2020 but higher than any time pre-pandemic, outside of late 2017 following tax reform.
At the stock level, however, the median S&P 500 firm carries short interest equivalent to just 1.5% of market cap, matching the record low reached in 2000 and roughly unchanged since the short squeeze in early 2021.
Are we just in a wait mode? If so when you think the wait will be over?
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