Recall the “reason for the season” if you will…
From Goldman:
Hedge funds lifted leverage while cutting short interest in recent months. Net exposures rose from 53% in September 2016 to 59% on Election Day, and have since surged to nearly 70%, the highest exposures since 2015. Gross leverage also rose in recent months above 220%, near multi-year highs.
And from Deutsche:
Overall US equity fund positioning getting elevated.Elevated overall positioning reflects that of long-short hedge funds and asset allocation funds.
Consider those excerpts with the following chart via Nordea:
Three words: All. In. Dammit.
h/t Martin Enlundâ€
