Money managers under the microscope
ML note – hedgies sell equities
Bank of America-Merrill Lynch’s latest “Hedge Fund Monitor” note shows managers are aggressively selling equities and building a record net long position in 2-year Treasuries.
In commodities they held onto their “crowded longs” in gold but added marginally to net shorts in copper, while in energy they cut their net long positions in crude oil and heating oil and marginally covered crowded shorts in natural gas.
Elsewhere, they added to shorts in 10-year Treasury notes and built a record net long in 2-years.
Meanwhile, market neutral funds’ market exposure dropped last week, while long/short funds are now modestly underweight equities.