Hedge Funds are Increasing Equity Exposure

By on March 28, 2012

According to Nikolaj Gammeltoft and Whitney Kisling at Bloomberg, hedge funds are increasingly bullish on the outlook for stocks and have raised their allocation to equities at the fastest rate since April 2010.

Data compiled by the International Strategy & Investment Group (ISI) shows the proportion of hedge fund bets that stocks will rise climbed to 48.6 last week from 42 at the end of November 2011.

ISI surveys 36 hedge funds (largely U. S. based) with about $89 billion under management. ISI shows equity exposure on a scale from zero indicating “maximum” short selling to 100 signifying “maximum” bullish bets.

The lengthy article had an interesting statistic on trading volume so far this year (through March 5th), which has been the lowest since 1999; another year in which a bubble in equities occurred.

Source: Bloomberg

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