Do Equities Have More Room to Run?

The video discusses the current state of hedge fund exposure to the S&P 500, highlighting that it is significantly lower than average due to a defensive positioning. Hedge funds have maintained a focus on momentum strategies, which have underperformed recently. The video suggests that if hedge funds shift towards value stocks, it could drive the market higher.

What is the term used to describe the measure of hedge fund returns relative to the S&P 500?

• Alpha

• Gamma

• Beta

• Delta

Why have hedge funds been cautious in their market positioning?

• They are waiting for interest rates to rise.

• They expect a market crash.

• They are skeptical about macroeconomic improvements.

• They are focusing on emerging markets.

What type of stocks have hedge funds focused on despite a market shift?

• Momentum stocks

• Dividend stocks

• Growth stocks

• Value stocks

What has been the recent performance of the momentum strategy?

• It has underperformed and reached its lowest level since 2017.

• It has shown mixed results.

• It has remained stable.

• It has outperformed the market.

What could potentially happen if hedge funds start shifting towards value stocks?

• The market rally could strengthen.

• The market might crash.

• The market could become more volatile.

• Interest rates might increase.