Thursday, January 21, 2016

Hedge funds have a hot idea: retreat

Most hedge funds, followers of the majority, are notorious market timers. If they're reluctant to buy, it's generally a good time to do so. If they're big owners of stocks, it's generally time to tighten risk management and look elsewhere.

Headline: Hedge funds have a hot idea: retreat

Hedge funds reeling from the recent stock-market turmoil are rallying around a hot tip: Buy nothing.

After an abrupt decline that sent the Dow Jones Industrial Average deeper into correction territory, a number of hedge-fund managers are playing defense. Some are stockpiling cash. Others, including some managers who are known for making bold bets on stocks when markets plunge, are bracing for an extended downturn unlike any seen in recent years.



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