While the hedge fund industry has faced criticism for lackluster returns and high fees, there's no denying the industry still has a significant impact on the market environment.
The hedge fund industry manages around $4 trillion in assets, and long and short fund positions tend to offer valuable insights into financial market trends.
A sudden shift in sentiment, either positive or negative, can have a significant impact on asset values.
The global assets allocation team at Societe Generale compiles a monthly report on hedge fund allocations and behavior. The latest report shows funds are positioned for a significant market correction, with most investors being net short on equity indices. The bearish sentiment is one standard deviation below the historical average for the trend...
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