Why would hedge funds pile into risk right before bonuses get locked in?
They won't. Not when AI sentiment has cooled off post-Jensen's latest remarks. The only ones still pressing are the ones trailing badly on the year.
Most funds that were up YTD have already round-tripped their gains. They've been through multiple brutal drawdowns in 2024. At this point, they're nursing wounds, not chasing upside.
Preservation mode kicks in when you're sitting on profits heading into year-end. The last thing you want is to blow up your bonus on a late-year gamble.
They won't. Not when AI sentiment has cooled off post-Jensen's latest remarks. The only ones still pressing are the ones trailing badly on the year.
Most funds that were up YTD have already round-tripped their gains. They've been through multiple brutal drawdowns in 2024. At this point, they're nursing wounds, not chasing upside.
Preservation mode kicks in when you're sitting on profits heading into year-end. The last thing you want is to blow up your bonus on a late-year gamble.