Small-cap stocks are more hated than ever: Hedge funds’ short exposure to Russell 2000 stocks has risen to a record ~20 billion. Over the last few weeks, bearish positioning has DOUBLED, now exceeding the 2021 high. According to Goldman Sachs, hedge funds shorted ~4.3 billion in small-cap stocks between July 22nd and August 5th, the largest 2-week amount in at least 10 years. As a result, the Russell 2000 has yet to hit an all-time high and is ~9% below its November 2021 peak. Small caps need help.(The Kobeissi Letter)