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Hedge funds have already started bailing out of ‘Trump trades’

Money managers had piled into stocks that could benefit from a Trump win

Hopes of deregulation by president-elect Trump led to a wave of bets on sectors that may benefit
Hopes of deregulation by president-elect Trump led to a wave of bets on sectors that may benefit Photo: Brandon Bell/Getty Images

Hedge funds have already started bailing out of the ‘Trump trades’ that they previously piled into in the immediate aftermath of the US elections, according to analysis from Morgan Stanley’s prime brokerage division. 

The so-called ‘smart money’ switched to become net-sellers of global equities in the week ending 15 November in movements driven by a move out of North American stocks on the part of long/short funds and macro traders. 

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