YWR: Killer Charts
Usual disclosure: Personal views only. Not investment recommendations
Let’s get into hedge fund positioning. Hedge fund positioning is the best indicator of how the market is going to surprise us next. Unlike mutual funds (which don’t take big bets) hedge funds are more unconstrained in how they can invest. It’s a better view of market consensus, positioning and where the incremental flows will go.
This week’s Killer Charts is sponsored by Goldman Sachs and the great work they do on Hedge fund positioning.
Theme 1: Hedge Funds don’t trust the value trade.
Value is working. HF’s started to buy the value sectors, but as soon as tech rallied at the end of 2022 they ran right back in again, and will get whipsawed again.
Value is working, but it isn’t a straight line. It never is.
Still a record discount for value.
