Hedge Funds Trim Bullish Nasdaq Bets as Cost of Protection Soars
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Enthusiasm is waning among the largest speculators for the rally that has sent the Nasdaq 100 Index up more than 25 percent in the last 16 months.
Hedge funds lowered their net-long positions on the gauge of technology shares at the fastest pace since January last week, cutting them 31 percent to 46,265 futures, according to data from the Commodity Futures Trading Commission. That’s about half as many as they owned in April. At the same time, options protecting against declines in the equities surged to their highest price ever relative to bullish contracts.