Hedge Funds’ Indexing Comes Out of the Closet

At least seven funds counted SPY — the S&P 500-tracking ETF — as their largest U.S. long positions at the end of last year.

Jim Young/Bloomberg

Jim Young/Bloomberg

A growing number of hedge funds are making bullish stock market bets with exchange-traded funds (ETFs).

At the end of the fourth quarter, at least seven funds counted SPY — the S&P 500-tracking ETF — as their largest U.S. long positions while four others had it in second place, Institutional Investor found in its review of fourth-quarter 13F filings.

Several

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