Financial News: Hedge Funds Take Bullish Approach
Wednesday, December 9, 2009 : PermalinkWSJ – Equity hedge fund managers have taken their most bullish stance in more than three years in the run-up to the end of the decade, defying fears of a fall in markets.
Long/short equity funds were about 45% net long equities last week, according to research just published by market analysts at Bank of America Merrill Lynch. The analysts said this was well above the upper end of the historical average, which is between 35% and 40% net long.
The trend has been strongly toward net long since October 2008 when, using leverage, equity hedge funds’ net positions were almost 1,000% net short. It is now at the highest net long position since April 2006, and the second highest net long since at least April 2003, when the bank’s records begin.
