Macro Hedge Funds Net Short U.S. Equity Markets Ahead Of Fed Meeting

Macro hedge funds are net short the U.S. equity markets – and positioned themselves as such ahead of the Fed’s decision not to raise interest rates last week.

One month rolling S&P 500 and NASDAQ exposure for global macro hedge funds

Bank of America’s Hedge Fund Monitor, dated September 14, indicates that macro hedge funds sold both S&P 500 and NASDAQ to a net short the first time since May 2014. Moreover, reading in NASDAQ 100 is the most short since May 2013.

They also reduced their long in 10-year treasury, added to shorts in commodities, increased their net long in the U.S. dollar and neutralized their large-cap preference, as well...