Watch onNEW YORK - U.S. equity long/short hedge funds have cut to six year lows the level at which swings in the S&P 500 affect their profits or losses, as portfolio managers are taking less directional bets, data from hedge fund research firm PivotalPath showed.
A stocks rally concentrated in a few sectors - such as mega cap tech companies - has not generated the usual spike in confidence surrounding broader rallies, he added. This more neutral positioning has translated into lower gains for hedge funds this year. Fundamental equity long/short hedge funds focused on the U.S. are up 8.2% this year through September, according to PivotalPath, below the S&P 500 return of almost 12% in the first nine months of the year.
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