Cramer’s message: Don’t be duped. Even if it appears that a money manager holds no short positions or other investments – something they’d have to disclose when talking to the press – there’s no rule that requires them to say they’re underinvested and missing the market’s move. And in that case, they have just as much reason to want a decline in stocks.
Never underestimate the motives of hedge funds. Just one year of poor performance can set off massive client redemptions, and no money manager wants that to happen. Some of them will plant negative stories in the press to bring stocks down to a more attractive level. It’s sad but true, Cramer said, so investors need to watch for it.
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