"Construção" de proposta de reforma da lei laboral vai para consulta "definitiva" de parceiros, anuncia ministra

[Ulisses Pereira]

"Hedge Funds Changing Their Tune"

By Jim Cramer
RealMoney.com Columnist
1/3/2007 11:26 AM EST

"You will get panic fast in this market. Hedge funds will dump oils and oil service furiously to pick up some tech and some health care and finance. They can't afford to fall back again, and they now see they have to go more with the market than be against the grain of the market.

Last year the hedge funds went against the prevailing market, and they got crushed vs. the averages. Now they have to get rid of what's losing and buy what's winning if they are going to keep up.

The transition will be difficult. There was so much money bet on oil going into the new year that those funds that were attempting to mimic the big mutual funds that were piling into Conoco (COP - commentary - Cramer's Take - Rating) and Exxon Mobil (XOM - commentary - Cramer's Take - Rating) and Schlumberger (SLB - commentary - Cramer's Take - Rating) are getting snuffed.

I know that this kind of flitting is seemingly ridiculous, but 2007 will be known as the beginning of hedge funds getting out of what's not working and getting into what is working: the opposite of 2006's game plan. Be ready for this kind of behavior. Fewer shorts, more go with the flow.

That means you will see another day of tech, finance and banking going higher.

These guys are running scared. "

(in www.realmoney.com)