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

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...


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

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...