US hedge funds bet on trade deal

Fund managers optimistic an agreement in the offing while others remain skeptical

Anticipating a US-China trade deal soon, US hedge funds have increased their holdings in United States-based companies that derive significant revenue from China, research by a major New York investment bank found.

At the start of the fourth quarter this year, the funds' median holdings of China-related stocks represented 3.4 percent of US hedge funds' total market capitalization, up from 2.7 percent at the beginning of the third quarter - an increase of about 26 percent, said the report from Goldman Sachs Group.