Hedge Fund Trend Monitor: Q1 Short Interest Soars To 6 Year High

It may seem like an eternity ago, but the first quarter of 2025 was the first time since the Trump election when the market cracked, with the early March dump and subsequent rebound serving as a remarkable preview of the April rollercoaster.

Yet even though what hedge funds did just two months ago is now completely irrelevant, after the April juggernaut, it does provide a glimpse into their thinking and perhaps an explanation as to why so many funds ended up being so badly positioning if not for the initial April rout, then certainly for the subsequent surge.