Markets rebounded after dip, but hedge funds selling off equities

From Investing.com: 2024-08-22 05:21:26

Equity markets rebounded strongly after August 5 dip, but hedge funds are still selling global equities at a fast pace, with HFs reducing Gross and Net leverage ratios. Despite an increase in fundamental long/short returns in August, funds are cautious, favoring small-caps over large-caps and high-dividend stocks in Utilities, Energy, and Real Estate sectors. Technology sector is most net sold, with short sales in Semiconductors and long buys in Software. North America and Japan are the most net sold regions, while Emerging Markets like China, South Korea, and Taiwan are seeing significant risk unwinds. Europe is modestly net sold with long sales dominating.



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