Small-Caps Trail S&P 500 By Most in 6 Years on Hedge Fund Sales

(Bloomberg) The smallest U.S. companies are trailing larger stocks by the widest margin in six years after hedge funds sold equities to pay back customers.

The Russell 2000 Index, where hedge funds own an average 13 percent of shares, lost 24 percent in October, ending a five- month streak of beating the Standard & Poor's 500 Index, data compiled by Bloomberg and Citigroup Inc. show. Hedge funds hold 10 percent of S&P 500 companies, according to Citigroup data.

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