Hedge Funds Controlled Their Risk Appetite In Q3

While retail margin debt has eclipsed new highs multiple times this year, it seems hedge funds are holding steady. The latest from Goldman Sachs Hedge Fund Trend Monitor noted that risk appetite of hedge funds stayed within the same frame in the past two quarters.

Not chasing the market?

The net long exposure, as estimated by Goldman Sachs Group Inc (NYSE:GS), was at 51% at the beginning of the fourth quarter, still high but steady. This is the ratio of net equity exposure to total long portfolio size, which reached 53% in the first quarter, breaking a previous record...