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Keith McCullough, founder and CEO at Hedgeye Risk Management, points out that many consensus hedge funds were positioned short on housing prior to the latest market move.
This observation highlights the prevailing sentiment among hedge funds regarding the housing sector coming into the current market shift.
McCullough has previously said he has accurately predicted every major market crash since 2008, emphasizing the importance of timing in his approach to risk management here. He also reported keeping his DRAM position at the minimum size, choosing not to expand his holdings in that segment here. These moves reflect a cautious positioning across various sectors.