Calling All Readers

I believe that hedge fund sentiment might be the most important factor in the market today. No other group controls such a large amount of money and changes their net exposure so drastically in such short periods of time. It is very difficult to get a good read on sentiment and exposure levels in the hedge fund community.

For those readers with contacts in the hedge fund community, how would you describe current sentiment and exposure levels of hedge funds as a whole?

5 comments:

Anonymous said...

Hedgefund is such a broad general term now. more than 1/2 act as buy and hold mutual funds, then you have quant funds who hold for 3 milliseconds.

Anonymous said...

i disagree that hedge fund buying drove this up. I think short covering drove this market up. Just about every single trading blog since August was bearish and constantly trying to pick tops.

Tsachy Mishal said...

If you go back and look at hedge fund letters written during the Summer they were grim. Many could be found on marketfolly.com.

We should be seeing 3rd quarter letters in the coming weeks. i would be willing to bet that there is a greatly improved tone.

Anonymous said...

Many funds are cautious-slightly net long. Nobody feels ebullient except for some emerging markets funds.

Anonymous said...

Believe it or not most funds >100mm in assets under management are buy and hold and do not flip to 100% cash, EVER. they will occasionaly hedge 10-20% of their portfolio. they may have not bot more at the august low, but that does not mean they aren't still long from there. they may have just been pessimistic in their literature to pre warn their clients.