Hedge Funds and Asset Managers Bullish with Record Equity Exposure Since April 2023

Hedge funds and asset managers have significantly increased their equity exposure, marking the highest levels since April 2023. This bullish sentiment is further underscored by their long positions in equity futures, which are at their highest in nearly a decade. Additionally, the BofA Bull & Bear Indicator has risen to 6.3 from 6.1, the highest since March, driven by inflows into emerging market stocks and bonds, improved global stock breadth, and reduced hedging in the S&P 500. The Bloomberg Global 60/40 Index has also reached a new high, up by 13% year-over-year.