Hedge Funds Established Winning "Trump Trade" Before Election OutcomeMark Melin
Institutional investors sent dichotomous signals in their positioning leading up to the election of Donald Trump. While hedge funds moved to establish risk-on positions – establishing notable long Trump trade exposure in S&P 500 futures contracts, for instance — it was more conservative institutional investors who ran from the election, embracing a risk-off stance. This occurred as managed futures CTA and CPO strategies piled into the industrial metal copper, a Bank of America Merrill Lynch report noted.
Also see Q3 2016 hedge fund letters