Here We Go Again: Largest Unwind In Hedge Fund Gross Exposure Since COVID Crash

In some ways, last week's (brief) selloff which culminated with the post-payroll rout was vindication for hedge funds, whose performance in the past 2 months had been obliterated by rolling retail-inspired short squeezes and systematic funds chasing momentum and trading against the grain of the generic Long/Short portfolios, represented best by the Hedge Fund VIP less most shorted Goldman basket, which one week ago hit a new 2025 low