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Hedge funds are fleeing stocks: one chart tells the story
Evercore ISI’s recent hedge fund survey indicated that funds have their lowest net-long exposure to stocks in two years.
Net-long exposure to stocks peaked in September of 2014.
Analyst James Walsh said that funds’ net exposure has been a good contrary indicator of stock market movement.
In a new report, Evercore ISI analyst James Walsh looked at hedge fund exposure to stocks. According to Evercore’s most recent survey, funds have been consistently reducing exposure to stocks for quite a while.
Evercore surveyed 31 hedge funds with net assets of about $86 billion and asked them to rate their long exposure to stocks on a scale of 0 to 100, where 50 indicates normal net exposure. “Over the years, we have noticed that our hedge fund survey has been a good contrary indicator for the market,” Walsh wrote.
Read more and see the chart at Benzinga.
Photo: Umberto Salvagnin