Hedge-fund managers have become more bearish on equities because they're concerned about slowing economic growth, according to results of a recent survey released Monday by TrimTabs Investment Research and BarclayHedge.
The firms surveyed 104 hedge fund managers over the past week and found that 47.1% of them are bearish on the Standard & Poor's 500 Index. That's up from 33.1% a month earlier.
Just over 17% of those surveyed were bullish on the S&P 500, down from 33.9% a month ago, TrimTabs and BarclayHedge reported.In my experience betting with the crowd when there is such a strong consensus is not a good risk/reward proposition. If there is a bright side for the bears it is that many were burned being short off of the March 2009 lows, so I doubt that they are aggressively shorting.