Managers dismiss domestic stock bounce as hedge fund driven

Managers have dismissed recent bounces in domestic stocks as short-term rather than a change in mark...

Managers have dismissed recent bounces in domestic stocks as short-term rather than a change in market leadership. None of the groups surveyed expect the rally to continue as economic data for the UK becomes increasingly weak. A long-term trend of outperformance for miners and underperformance for banks and housebuilders has reversed in recent weeks. But managers blame hedge funds for unwinding short positions in banks and housebuilders, causing stocks to rally. However, none were willing to predict miners would return to the highs of earlier this year. Neptune UK Opportunities ma...