SocGen: CFTC Data Suggests Large Correction Likely If Economy Outperforms

While the hedge fund industry has faced criticism for lackluster returns and high fees, there’s no denying the industry still has a significant impact on the market environment. The hedge fund industry manages around $4 trillion in assets, and long and short fund positions tend to offer valuable insights into financial market trends. A sudden shift in sentiment, either positive or negative, can have a significant impact on asset values. The global assets allocation team at Societe Generale compiles a monthly report on hedge fund allocations and behavior. The latest report shows funds are positioned for a significant market correction,…