Kostas Morsalis

So it's been a huge rally.

We saw some very strong earnings from big AI companies like Alphabet for the first quarter.

And they signaled a huge amount of spending, hundreds of billions on AI infrastructure like chips.

And that sent a lot of stocks soaring higher.

So Intel more than doubled.

AMD went up 74%.

And that has also meant that big blue chip indices like S&P 500 was up 10%.

So it's been a huge rally in one month.

And hedge funds have taken advantage.

So it's been a very, very strong month.

So is this a big switch from earlier in the year?

It's definitely a dramatic turnaround.

March was a terrible month for hedge funds, one of the worst since the COVID lockdowns, which shut down the world economy in 2020.

And I mean, hedge funds were really hit badly by the Iran war, which suddenly revised up inflation expectations and that hit government bonds.

The stock market was partly impacted.

So it was a brutal month.

So it's a big rebound.

Hedge funds are typically quite correlated to the market, which means they rise in the market, they fall in the market.

We reported on some research from BNP Paribas that said that they were the most correlated to the market last year than they've been in over five years.

And this is partly mechanical.