The hedge fund industry is still not ready to bet big on the latest market rally, sector leaders say, despite a surge across global equity markets in January.

The FTSE 100 reached an all-time high of 7,950 during intraday trading on 9 February. With European stocks heading for one of the best starts of the year ever after the Stoxx Europe 600 Index gained 8% year-to-date, hedge funds still fear a dead-cat bounce after a dismal 2022 for global stocks.