
Asset manager famous for bet against US housing market says stock prices are unhinged from fundamentals

Equity long-short funds attract investor inflows for first time in a decade on strong returns so far in 2025

Short positions rise sharply as traders eye economic fallout from Iran war

Some investors reduce positions or buy protection for their portfolios amid concerns over valuations

Rally in heavily shorted stocks comes as AI hype and hopes of lower rates push S&P 500 to record highs

Swings in the dollar, gold and government debt have been fertile territory for funds such as Kirkoswald, Rokos and Caxton