Hedge funds up leverage, but fear directional bets with blurred macro picture

Hedge funds are increasingly using more leverage to make wagers on the stock market this year, but they remain less inclined to bet on the market direction due to heightened macroeconomic uncertainties.

March 10, 2023 . 4:37 PM

1 min read

Hedge funds up leverage, but fear directional bets with blurred macro picture.
Gross exposure reached peak levels for the last one year according to Goldman Sachs' Prime Services Weekly report.
Net exposure - a measure of directional risk appetite - is close to a year low of 66%.
Hedge funds are trying to guess how high interest rates will get and when inflation will show consistent signs of decline.
Long-short hedge fund Anson Funds is roughly neutral, with shorts and longs matching off.