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Hedge funds short small caps most in a decade

They bet US$2.8b that the index of bottom 2,000 stocks will fall

Short sales: The biggest speculators have increased short sales and bought hedges in most stocks as technology companies led a decline that erased US$1 trillion from American share values between April 2 and 12. - PHOTO: AFP

MONEY managers are turning on stocks that have delivered the best returns during the bull market: small caps.

Large speculators such as hedge funds are betting US$2.8 billion this month that the Russell 2000 Index will fall. That's the most since 2012 and the highest versus average levels...