Bank of America: Hedge funds are unusually bullish about these 20 stocks as they brace for tough times in markets

• Hedge funds aren’t getting overly optimistic, even as economic data looks promising.
• Defensive holdings by long-short funds are historically high relative to cyclicals.
• Here are 20 stocks that hedge funds are gravitating toward in this uncertain market.

Although several economic signals have offered investors reasons for optimism right now, hedge funds can’t seem to shake their cautious convictions.

Besides a stubbornly low unemployment rate and resilient GDP growth, positive signs for the economy include still-rising consumer spending data and accelerating capital expenditure by businesses, according to Bank of America.