哈希定位胆:Skeptical on U.S. stocks, equity hedge funds sit out market rally

哈希定位胆（www.hx198.vip）采用波场区块链高度哈希值作为统计数据，游戏数据开源、公平、无任何作弊可能性，开放单双哈希、幸运哈希、哈希定位胆、哈希牛牛等游戏。

NEW YORK: Still uncertain on where U.S. stocks are headed, equity hedge funds are sitting out the market rally despite taking big paper losses on bearish bets since June, according to industry executives and market data.

After slumping more than 20% during the first half on worries aggressive U.S. Federal Reserve rate hikes aimed at taming inflation may cause a recession, the S&P has rebounded 17% since mid-June on signs prices may be stabilizing.

However, hedge funds have remained on the sidelines of the rally to assess more economic indicators before re-calibrating their portfolios, said prime broking executives and fund managers.

In a sign of their dim view of the market, hedge funds are sitting on a record $107 billion worth of net short positions - or negative market bets - in S&P 500 futures, according to BNP Paribas calculations based on regulatory data from last week.

That skepticism among sophisticated investors with $1.1 trillion in assets globally suggests the rally could be short-lived, according to prime brokers.

"This is probably one of the most disliked rallies in the market across all client segments," said a prime broker at a Wall Street bank, noting funds have been selling long positions into the rally. "The first week of August was one of our largest de-risking weeks we've seen in the last five years."

Stocks are rallying largely because some investors believe the Fed will pull back on tightening monetary policy sooner than previously expected, although Fed officials aren't making that promise.

免费足球推荐（www.ad168.vip）是国内最权威的足球赛事报道、预测平台。免费提供赛事直播,免费足球贴士,免费足球推介,免费专家贴士,免费足球推荐,最专业的足球心水网。

Not all bearish hedge funds have been able to maintain their short positions, and some of the market's recent gains have likely been fueled by investors unwinding or "covering" those bearish bets, the people said. That process involves buying back stocks the funds had borrowed to sell short.

NOT A GREAT SIGN

"There was a lot of coverage by hedge funds while the market went up," said Kris Kwait, chief market strategist at Commonfund, an asset manager which invests in hedge funds.

Kwait added that the fact hedge fund covering appeared to be driving the rally was "not a great sign" for its sustainability.

When the rally gained steam in July, hedge fund sales of long positions and purchases to cover short positions in non-essential consumer goods stocks, for example, were among the largest in the past five years, according to Goldman Sachs data.

Max Grinacoff, U.S. equity and derivatives strategist at BNP Paribas, said short covering continued in August, and last week "in particular", after Wednesday Consumer Price Index data suggesting inflation may have peaked sent stocks higher.

Since June 16, short sellers have suffered unrealized losses of $174 billion, although they are still up $162 billion in unrealized gains this year, according to financial analytics firm S3 Partners.