Still, two months of freefall doesn’t mean it’s over, said Connors. Because the funds are built to switch their positions quickly, they’ll likely be able to make up for lost ground.
“When trends switch, they have a short term model and can pick that up. When there are risk reversals, these guys are making money,” said Connors. “Does that work every time? No it doesn’t.”
This article was provided by Bloomberg News.