Hedge Funds Have Biggest Short Position on S&P Since December 2008

Hedge Funds Have Biggest Short Position on S&P Since December 2008

Further evidence this relief rally has a lot more to run?

Hedge funds have a massive net short position on the S&P 500 – their largest since December 2008.  Check out this chart!

Hedge funds held a net short position of 71,980 short contracts at August 16, according to a monthly report on global asset allocation from Societe Generale, which looks at positions reported to the Commodity Futures Trading Commission. This is the biggest figure seen since December 2008, three months after the collapse of Lehman Brothers, when hedge funds held a net short position of 85,984 short positions.

Alain Bokobza, head of global asset allocation at Societe Generale, and one of the authors of the report, told Financial News: “Active market participants have switched to a massive net short. They have reacted very strongly to the recent economic and political newsflow. It’s a very important figure. It indicates just how pessimistic hedge funds are.”

Source: Financial News

Further reading: Last week, we noticed the S&P was forming a double bottom of sorts

About Author

Brett

Hi, I’m Brett Owens – and I’m a financial junkie. My “problem” started incollege, when I got a little dose of the stock market – man, was I hooked…in no time, I was reading the Wall Street Journal religously.

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