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Under-exposed to equities (and underperforming them) for some time, hedge funds are changing...

Under-exposed to equities (and underperforming them) for some time, hedge funds are changing course, writes Todd Salamone. Options activity in key stock index ETFs shows falling buy-to-open call volume, a sign, says Salamone, hedge funds are increasing exposure to stocks by covering shorts (thus buying fewer calls to hedge). Earlier: Not a good move, says Hussman.
Comments (4)
  • Kopey
    , contributor
    Comments (15) | Send Message
     
    Rushing right in since these hedge funds have been so on the markets for the last five to seven years. Everybody in the water. Thanks to folks like Mr. Hussman for sharing his view which makes much more sense.

     

    The hedge funds have been chasing the markets for a long time and how has that worked out for many of them? Follow them at your own peril.
    10 Sep 2012, 08:53 AM Reply Like
  • archerfield
    , contributor
    Comment (1) | Send Message
     
    Everyone holding cash, rates as flatline lows, banks pulling out of Eq's - Sounds like time to jump in...
    10 Sep 2012, 09:15 AM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    A good strategy here if you are a "hedge" is to buy delta neutral positions. This covers both an increase in IV from relatively low vol levels or a swing to higher levels, depending on choice of strikes.
    10 Sep 2012, 11:45 AM Reply Like
  • PalmDesertRat
    , contributor
    Comments (2584) | Send Message
     
    bot some qqq today at 68.46
    26 Sep 2012, 10:09 AM Reply Like
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