market folly

We're back with this week's edition of Bank of America Merrill Lynch's hedge fund monitor report. Last week, their report focused on how hedge funds continued to de-risk. This time around, we see that the de-risking trend continued as hedge funds sold equities, oil, and the euro.

By far the most notable takeaway from this report is the fact that long/short equity hedge funds continued to de-risk and reduced market exposure down to 27-28% net long exposure and this is the lowest level since May 2009. Shifting to other fund strategies, the report found that market neutral hedge funds increased their equity exposure, while global macro hedge funds held their equity exposure steady. Macro funds were also selling emerging markets.

Below you will find the entire Bank of America Merrill Lynch hedge fund monitor report. RSS & Email readers must come to the site in order to view it.




We'll continue to cover hedge fund movements on a daily basis. In the mean time, check out more research from Bank of America where they recommend to overweight stocks and underweight bonds. For more insight as to what hedge funds are investing in, we've previously examined the top stocks held by hedge funds as well.