17-07-2025
Hedge Funds Take Aim at Small Cap Stocks After Torrid Rally
Hedge funds are ramping up bets against the shares of smaller companies after a searing rally, as doubts linger about the resilience of the US economy in the face of a global trade war.
The short position on the Russell 2000 Index hit $16 billion in July, one of the highest levels since 2021, according to the Goldman Sachs Group Inc. trading desk. More broadly, net exposure to Russell 2000 futures sits near its lowest in a year, even as investors' futures bets on the Nasdaq 100 Index are near historic highs. The gap between the two metrics is the largest ever, according to Goldman.
