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- Hedge funds are increasingly betting against stocks and shedding leverage, Bloomberg reported.
- Their net leverage saw the biggest weekly decline since pandemic-era lows in 2020.
- The bearish bets come as the Fed indicated last week that interest rates will stay higher for longer.
Hedge funds are taking a rapidly bearish stance on US stocks after the Federal Reserve signaled last week it would be keeping interest rates higher for longer.
Managers slashed their net leverage by 4.2 percentage points to 50.1%, according to data from Goldman Sachs' prime brokerage unit seen by Bloomberg – marking its biggest weekly decline since the market's downturn at the start of the coronavirus pandemic.