Hedge Funds Unwind As Growth To Value Rotation Intensifies

Stocks with concentrated hedge fund ownership and momentum names have underperformed over the last few months, says the latest asset-allocation report from Deutsche Bank dated Friday, March 28th. The report further noted that hedge funds and mutual funds have cut their equity exposure to neutral positioning in the last quarter. There are some concerns that the recent sell-off may be an indicator of wider correction in the equity markets. However, the report finds that similar rotations from growth to value stocks in the past have been followed by rebounds in equity markets.

Rotations have been followed by rebound in markets: Deutsche Bank

The analysts find that...