On 13 November 2026, Hedgeweek reported that hedge funds are rebuilding short positions in rate-sensitive stocks as inflation concerns return.
- increasing short positions in US equities vulnerable to higher interest rates and weaker consumer demand;
- BoA’s short analytics team identified renewed selling pressure in heavily shorted small-cap stocks;
- shift follows stronger-than-expected US inflation data;
- reinforcing expectations that the Fed could maintain elevated interest rates for longer.