JPMorgan: AI Position Unwind May Be Ending, Hedge Funds Could Rebuy

Cointime reports: Hedge funds sharply cut risk and liquidated AI positions in October, improving the positioning backdrop for US equities, especially AI stocks, into year-end, JPMorgan said. If AI shares stabilize in November while retail investors keep buying equity funds, hedge funds may begin rebuilding AI exposure from late November. Long-term investors’ bond allocations could still cap further yield declines, with subsequent rate moves potentially driven more by momentum and speculative flows.