There's one group that's pretty excited about the prospects of the current stock market, and it's a fairly significant one: hedge funds. According to research from Goldman Sachs, hedge funds are more exposed to stocks right now that they've been at any point over the past six years.
Goldman says the net long exposure to equities in hedge funds increased to 52 percent in the fourth quarter of 2012. That matched where it was back in the first quarter of 2007, but the figure hasn't been any higher than that in ten years.
Part of it is just playing catch-up. The average hedge fund returned just 8 percent last year, while the Standard & Poor's 500 returned 13 percent. That has continued into the new year, with the average hedge fund up just 3 percent through February 8, while the S&P was up 7 percent.
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