Hedge fund pendulum swings back to small cap stock

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 about-face on record, going by Commodity Futures Trading Commission data compiled by Bloomberg that goes back to 1994.