Group 1 - Hedge funds are increasingly bearish on U.S. stocks, with short positions becoming a consensus among institutional investors due to high market uncertainty [1][3] - The confidence indicator for hedge fund managers regarding specific investment strategies fell to a historic low of 10% at the end of March, although it has slightly recovered since then [1][3] - The S&P 500 index experienced its longest consecutive rise since November, but "smart money" is preparing for further declines in the U.S. market [1][3] Group 2 - Three significant challenges are leading hedge funds to short U.S. stocks while betting on European and Japanese markets, which have not yet fully reflected in current market prices [3][5] - The investment themes are becoming clearer, with stock strategy managers reducing U.S. stock holdings and increasing bets on Europe and Japan due to anticipated weaker growth not being priced in [3][5] - Emerging market investments performed notably well, with a return of 6.3% in the first quarter, driven by a surge in the Chinese stock market, while the overall hedge fund industry returned only 1.7% [3]