This page has been archived and commenting is disabled.

Going Into Q3, Hedge Funds Have Never Been More Bullish

Tyler Durden's picture




 

Based on quarterly 13F filings and estimated short positions of the equity holdings of 909 funds, BofAML calculates that hedge funds raised net exposure to a new record high of $683bn at the beginning of 3Q 2014, while reducing cash holdings to a record low of 3.5%. Gross exposure rose to 190%, or 207% if ETF positioning is considered, which is back to the 2007 peak... In other words, hedge funds have never been more bullishly positioned (just as large speculators had never been so bearishly positioned into last week's bond-short capitulation).

 

All-In Or Bust into Q3...

 

Especially in the Small Caps...

 

And Mid-Caps...

 

And their ability to withstand any pullback (cash) has never been lower...

 

*  *  *

This did not end well last time... but this time is different right?

Charts: BofAML

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 10/20/2014 - 15:34 | 5356201 Frank N. Beans
Frank N. Beans's picture

didn't the hedgies get the Fear Factor = 0 memo?

Tue, 10/21/2014 - 02:43 | 5358312 CASTBOUND
CASTBOUND's picture

my neighbor's half-sister makes $63 /hour on the internet . She has been out of work for 10 months but last month her pay was $16551 just working on the internet for a few hours. More Info... www.job-reports.com

Mon, 10/20/2014 - 15:41 | 5356224 TheRideNeverEnds
TheRideNeverEnds's picture

Well they are right, you will want to load the boat before the next round of QE is unveiled, get in on the cheap.  

 

If you think about it we just came out of our first 10% correction in years so now is a great time to buy, all the selling is done for this year and most of next year a this point.

 

Hell look at AAPL, its up over 2% into earnings where it will likely go up another 5-10% in the next hour. 

 

Just buy everything before the CDs do, its free money.  

 

Mon, 10/20/2014 - 15:44 | 5356254 Bell's 2 hearted
Bell's 2 hearted's picture

with leverage, of course

Mon, 10/20/2014 - 15:51 | 5356286 SheepDog-One
SheepDog-One's picture

Double+ leverage.

Mon, 10/20/2014 - 15:44 | 5356252 yrad
yrad's picture

Where is Jon Corzine?

Mon, 10/20/2014 - 15:45 | 5356258 Dr. Engali
Dr. Engali's picture

The Santa Clause rally is coming. Everybody will get their Christmas bonus and run out to buy stawks......... Bahahahahaha...... Bonus .... Lol

Mon, 10/20/2014 - 15:48 | 5356272 Bell's 2 hearted
Bell's 2 hearted's picture

i think one of the unwritten rules is never short when there is a FOMC meeting following week

Mon, 10/20/2014 - 16:04 | 5356345 Karlus
Karlus's picture

I think that is right

Mon, 10/20/2014 - 15:46 | 5356259 SheepDog-One
SheepDog-One's picture

Bozos elbowing each other in the face to get in line for the next round of endless 'free money', LOL

Mon, 10/20/2014 - 15:48 | 5356275 Ewtman
Ewtman's picture

Hedge funds are further out on the same limb they occupied in 2007, right before the collapse shown on this chart of the HFRX Global Hedge Fund Index.

 

http://www.globaldeflationnews.com/hedge-funds-surpass-2007-leverage-new...

Mon, 10/20/2014 - 15:51 | 5356288 I Write Code
I Write Code's picture

HTFD!

Mon, 10/20/2014 - 15:51 | 5356291 slaughterer
slaughterer's picture

We are wishing Heath Ledger's Joker character would pay a visit to this market.  Ain't going to happen, take a look at Yellen, take a look at Obola, take a look at... Shillary.  Uh, ES is on adult diapers and putters for the rest of the year.

 

Mon, 10/20/2014 - 16:46 | 5356534 craus
craus's picture

Shouldn't the Fed be spending money to short gold?

Do NOT follow this link or you will be banned from the site!