Despite worrying news about the global economy, hedge funds do not expect the markets to tank, according to two industry players.
“I don’t think we’re looking at a long-term train wreck,” SkyBridge Capital’s Anthony Scaramucci told CNBC’s Fast Money.
“There’s no question that the Fed signaled they’re worried,” he said. “But most of the hedge funds I spoke with on Wednesday are only looking for a 5% to 10% correction.” Scaramucci added, “over the next three to four weeks, I think we see the market stabilize.”
Metropolitan Capital’s Karen Finerman agrees that hedge funds are well positioned, and won’t contribute to the problem, at any rate.
“No hedge funds that I know of are levered up big,” she told CNBC. “That should mean we’re not going to see forced selling in the marketplace.”
“And for what it’s worth,” Scaramucci said, “I don’t think there will be a double-dip.”