Based on quarterly 13F filings and estimated short positions of the equity holdings of 909 funds, BofAML calculates that hedge funds raised net exposure to a new record high of $683bn at the beginning of 3Q 2014, while reducing cash holdings to a record low of 3.5%. Gross exposure rose to 190%, or 207% if ETF positioning is considered, which is back to the 2007 peak… In other words, hedge funds have never been more bullishly positioned (just as large speculators had never been so bearishly positioned into last week's bond-short capitulation).
All-In Or Bust into Q3…
Especially in the Small Caps…
And Mid-Caps…
And their ability to withstand any pullback (cash) has never been lower…
* * *
This did not end well last time… but this time is different right?
Charts: BofAML
via Zero Hedge http://ift.tt/1ybWYIF Tyler Durden