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A wide range of single-manager hedge funds across credit, equities, commodities, and other asset classes experienced a difficult October, with equities seeing some of the worst losses.
Kris Sidial commented that there has been a real reshuffling of risk among these funds over the month.
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Earlier this year, Kris Sidial highlighted that a significant slowdown in equity financing since June stalled public equity market flows. He also noted that short interest charts often miss important market flows as banks ease margin requirements for client bets. These observations have focused attention on changing risk dynamics throughout the market.