Hedge Funds Betting on Calm

Large speculators were net short nearly 82,000 futures contracts, and VIX is near its all-time low.

Hedge funds are betting the stock-market tranquility that’s stifling trading and hurting bank profits will be around for a while.

Large speculators have added bets on lower volatility and were net short almost 82,000 contracts on VIX futures last month, the most since October, according to data from the Commodity Futures Trading Commission (CFTC). The strategy will be profitable should the Chicago Board Options Exchange Volatility Index (VIX) continue its 15 percent retreat this year.

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