This is from earlier but is useful nonetheless, just a few snippets from the analyst commentary:
- the buying of DM equities in April thus far has been powered by CTAs and other short-term trend-followers along with fundamental value hedge funds and other such perma-contrarians
- Meanwhile, the funds looking least interested in buying have been those that focus mostly on fundamentals. In particular, the global heavyweights among macro hedge funds are still bearish on equities. We suspect that global macro hedge funds will remain bearish until there is some reason to believe that DM economies are on their way to finding a floor.
- Of course, it could still happen that investors quickly become more optimistic before economic indicators have had a chance to bottom out. Should that happen, global macro hedge funds might have to make an emergency rush for the exits from their short trades. However, our impression is that there is not much impetus among global macro hedge funds to rethink their current strategies just now
