Hedge funds are gearing up for a tumultuous election season this fall – by selling now while the waters are calm.
Managers need to have some powder dry for potential dislocations around the US election.” With what could be a wild presidential campaign, funds want cash ready to be deployed immediately as stock market volatility rises and share prices start to swing.
Is it the right strategy? We’ll find out in the Fall. For some context, PivotalPath’s Equity Diversified: U.S. Long-Short Fundamental Index gained 7.4% in the first half of the year compared to a 14% gain for the S&P 500.