Seeking Alpha – Bank of America Merrill Lynch is out with the newest iteration of its hedge fund monitor report. The bank highlights that hedge funds suffered heavy losses last week and ended January on a weak note. As such, hedge funds were looking to de-risk and BofA notes that global macro was by far the worst performing strategy for the month of January.
Turning to overall movements, BofA saw that long/short equity funds pared market exposure down to 29-30% net long, below the historical average of 35-40% net long. Market neutral funds also reduced equity exposure, having been pretty long the two weeks prior.
