Hedge Funds Show Up as Buyers of US Stocks Post-Election

After months of caution in the run-up to the US presidential election, hedge funds have emerged as big buyers of US stocks.

Hedge funds’ gross trading activity, which includes long and short wagers, jumped by the most in seven months on Wednesday, with a ramp-up in long positions responsible for most of the move, data compiled by Goldman Sachs Group Inc.’s prime brokerage show. The buying came as they covered short bets across large-cap and small-cap exchange-traded funds.