By David Marino and Christian Dass, Bloomberg Markets Live reporters and strategists
For hedge funds, last year’s popular index dispersion trade has increasingly morphed into more focused strategies.
With tariff tantrums upending global markets, macroeconomic concerns have taken over, overshadowing individual corporate news. In April, the implied correlation on the S&P 500 Index averaged its highest level in more than two years, remaining elevated even at the height of the earnings season. The trend was similar in Europe.
