Hedge Funds Are Highly Invested in Stocks. Here’s Why That Could Be a Problem.

(Barons) Hedge funds have been buying up stocks of late, but if history is a guide, the trend could reverse itself—and that would be a pressure point on stocks. Hedge funds’ net equity exposure has risen sharply in the second half of 2020 as the stock market has spiked from its pandemic-induced bear market in March.

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