(Bloomberg) — Warnings embedded in strategist price targets and historically low U.S. stock volatility are doing nothing to dissuade hedge funds.

They just spent another week adding to long positions in the equity market and building up shorts against the CBOE Volatility Index that were already at a record, according to data from the Commodity Futures Trading Commission. Stocks languished for most of Tuesday before extending gains in the final minutes of trading, as the S&P 500 Index added 0.3% to 2,186.48 as of 4 p.m. in New York. The Nasdaq Composite Index advanced 0.5% to a fresh record.

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