Hedge funds' exposure to cyclical versus defensive sectors is at an all-time low, according to BofA Savita. Goldman Sachs' hedge fund chief, Tony Pasquariello, has advised cutting portfolio risk, warning that while it is a bull market, the probability of a drawdown is increasing. He noted that the risk of a selloff rises as the rally narrows. Additionally, the cost to hedge portfolios against an S&P 500 decline has fallen to its lowest level in five years, indicating potential complacency and over-crowdedness in the market. Hedging costs for US and European stocks are also at all-time lows.
Goldman’s Hedge Funds Head Says It’s Time to Cut Portfolio Risk (Bloomberg) https://t.co/Q0LbCOppiT
S&P 500 #hedges have fallen to their cheapest level in 5y – An indication of the potential complacency and potential over-crowdedness of markets, chart @GoldmanSachs https://t.co/BhFd27KAJH
#hedging cost for US and European stocks at all-time lows, chart @ReutersMikeD https://t.co/5f83aOQVWA https://t.co/xgF4YTTwFM
The cost to hedge your portfolio against an S&P 500 decline has fallen to its cheapest level in 5 years, according to Goldman Sachs https://t.co/wKZyn2rJGs
OOP! Goldman hedge fund chief Tony Pasquariello says it's time to cut portfolio risk. “It’s a bull market, but the probability of a drawdown is rising,” Pasquariello says. “The history book tells us the risk of a selloff increases as the rally narrows,“ he warned: 'To be sure,… https://t.co/9QP9EFxSZq
"Hedge funds’ exposure to cyclical vs. defensive sectors is at an all-time low." - BofA Savita https://t.co/uyrn7vK8nZ