Hedge Funds

Hedge funds maintain huge small-cap exposure

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Hedge funds maintained their high exposure to small-cap stocks going into the third quarter, according to a recent Goldman Sachs survey of 609 hedge funds holding $650 billion in assets under management.

The Goldman Sachs report, part of the firm's Hedge Fund Trend Monitor series and based on an analysis of 13F filings with the Securities and Exchange Commission, indicates that as of the beginning of the third quarter the median hedge fund had invested 48% of its assets in stocks under $5 billion in market capitalization, up from 47% at the start of the second quarter.

Nearly