News Digest:

U.S. hedge funds had slashed, by the middle of June, their “net” equities portfolio exposure – defined as the difference between their “long” and “short” positions – to almost the lowest level since at least 2010, a Morgan Stanley note sent to clients has revealed.

Takeaway:

The conservative stance signals a belief among many investors that the downward corrections in stock markets in 2022 are yet to bottom out despite already huge losses for the year to date. The negative sentiment comes amid an extremely challenging environment for equity hedge funds, many of whom have been ravaged by a brutal sell-off in their holdings of fast-growing technology stocks.

End Notes

Source: https://www.ft.com/content/c62fab98-c27a-41a4-9f19-5fcd770021f2