Jeff Schulze, head of economic and market strategy at ClearBridge Investments, talks about the expectations for equities under Trump's presidency.
Hedge funds’ gross trading activity, which includes long and short wagers, jumped by the most in seven months on Wednesday, with a ramp-up in long positions responsible for most of the move, data compiled by Goldman Sachs Group Inc.’s prime brokerage show. The buying came as they covered short bets across large-cap and small-cap exchange-traded funds.
“Hedge funds think that Donald Trump will continue low tax and low regulation policies and managers are just expressing their confidence by buying again,” said Jonathan Caplis, chief executive officer of a hedge funds research firm PivotalPath. The S&P 500 has climbed 3.3% since Tuesday’s close and has posted 49 records this year, driven by investors’ optimism about the resiliency of the US economy, strong corporate earnings and the beginning of the rate-cutting cycle from the Federal Reserve.