Bloomberg Surveillance · Thursday, September 24, 2026
Despite a recent surge in hedge fund activity and re-grossing, an analyst questions who the incremental buyer will be beyond hedge funds, as retail participation has slowed and a corporate buyback blackout period is in effect. This suggests potential choppiness in the market.
“And hedge funds have de-grossed quite a lot over the past two weeks. And we've seen massive re-grossing Monday and Tuesday.”
“But I still think the, based on positioning, I think the pain trade could potentially be higher from here in the near term. But I also wonder who's going to be the incremental buyer other than hedge funds because I think retail's tapped out.”
“So other than hedge funds, I really don't see that many incremental buyers. I think it's just going to be choppy regrossing, degrossing by hedge funds.”