Hedge fund managers are raging bulls on the rally

Hedge fund managers are notorious for their attempts to beat the market, especially against the ever more competitive index fund. In their many attempts to sway their customer base, fund managers are more aggressive than ever. In a bullish market, hedge fund managers are raging bulls in a rallying market. Perhaps their victory now can reassure many of the old school ways.

Key Takeaways:

• The industry cut its net short position in exchange-traded funds to $65 billion from $72 billion at the start of the quarter, the lowest since the third quarter of 2013.
• During the third quarter, ETF buying focused most on the SPDR S&P 500 Trust, the iShares MSCI Emerging Markets and Financial Select Sector SPDR funds.
• Those funds, respectively, have seen fourth-quarter returns of 4.6 percent, -8.1 percent and 22.3 percent.

“Hedge funds have jacked up their bets on the stock market to their highest levels of 2016 and cut back on short positions to a three-year low amid a blistering post-election rally.”

http://www.cnbc.com/2016/12/27/hedge-fund-managers-are-raging-bulls-on-the-rally.html