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Hedge fund pendulum swings back to small cap stock

While the reason for the flip-flop is hard to pinpoint, it's mirroring a larger reallocation across US stocks that sent bank shares up.

New York

THE violent rotation gripping US equities has chased professional investors back into small-cap stocks.

In just two weeks, hedge fund positioning in Russell 2000 Index mini futures went from the most bearish in six years to the most bullish in four months. It's the biggest...