Home > News & Commentary > Hedge Funds and their push to lock in gains (SPX, NASDAQ, DJIA, SPY)

Hedge Funds and their push to lock in gains (SPX, NASDAQ, DJIA, SPY)

We have mentioned before the talk on the street about fund managers unwinding positions in order to lock in the gains they have made this year.  This has been talked about for a few weeks now, and it would seem that any manager who wanted to lock in their gains would already have done so.

According to a new Bank of America Merrill Lynch report (reported here, at the Market Folly blog) however, it would seem that Hedge Funds are still very much long the market, and have actually increased their equity exposures so far in December.  In fact, overall Hedge Fund assets have exceeded $2 trillion for the first time since 2007. This would give credence to the idea that there is still a lot of money still at risk, and if the markets do not show some signs of life before the end of the year, we could very well see a lot of that money go to the sidelines.

-AH

Disclosure: Remaining long the market, no specific stocks mentioned.

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