Hedge funds bet the sell-off is over: ‘Correction has run its course’

New York (CNBC):The majority of U.S. hedge funds aren’t expecting another big stock market sell-off as more firms curb bets on equity volatility, according to analysis at Nomura.

Despite a deterioration in U.S.-China trade relations and a stock sell-off starting in early May and continuing through Monday, many American hedge funds have closed positions betting on a rise in the Cboe Volatility Index within the last week. Those diminished bets for volatility suggest that some of Wall Street’s biggest players believe the equity decline is finally over, according to strategist Masanari Takada.