More than ever, hedge funds are loading up on unusually high amounts of cash, a clear sign that the smart money is bearish on the market through the rest of the year, The Wall Street Journal reports.
Both Steven Cohen, who runs the $14 billion SAC Capital Advisors, and Israel Englander, who runs the $14 billion Millennium Partners, have put a whopping 50% of their holdings into cash, cash equivalents, money market funds and other short-term instruments. Though the amount is not known, the $35 billion Paulson & Co. now has a substantial amount of its holdings in cash, as well.
There is a lot of uncertainty out there, and some people may be saying from a timing point of view they are more comfortable on the sidelines, said
