Hedge Funds Build Small-Cap Shorts

Apr 28 2014 | 2:27pm ET

Hedge funds don’t have a lot of faith in U.S. small-cap stocks.

Short interest in the Russell 2000 Index is at a two-year high, according to Bloomberg and Bank of America. The $2.8 billion in negative bets against the benchmark are the highest average level since 2004.

Small-cap stocks have rallied recently, leading to fears that valuations are too high. Those worries particularly surround technology stocks; hedge funds and other speculators have simultaneously boosted their Russell 2000 shorts and slashed their exposure to the tech-heavy Nasdaq 100 Index.


In Depth

Q&A: Portfolio Advisors' Brian Murphy On The Advantages of A Private Markets Platform

Jan 2 2018 | 11:05am ET

Most private markets firms reference their platforms as a source of competitive...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: The Top Hedge Fund Industry Trends for 2018

Jan 2 2018 | 12:22pm ET

Each year, Don Steinbrugge’s Agecroft Partners compiles the insights gained...

 

FINalternatives Trending

From the current issue of