Bloomberg – Hedge-fund managers, a group of investors who lost faith in small-cap stocks last year just before they plunged, are now shedding their bearish bets prior to first-quarter earnings.
Large speculators pared their short positions in futures tied to the Russell 2000 Index to around the lowest level since April relative to long ones, according to data from the Commodity Futures Trading Commission. The measure of smaller companies, whose constituents have an average market value of $1.1 billion, trades 0.8 percent below a record reached March 20.
