Hedge fund investors have gone from extreme bearishness to extreme bullishness, according to Ned Davis Research. : West Texas Intermediate crude futures have rallied 14% this quarter and 35% this year, putting oil on track to post its best annual performance since 2016. And now big investors are starting to get on board with the trade. "Hedge funds have swung from extreme bearishness to extreme bullishness," Ned Davis Research energy strategist Warren Pies said in a note Monday. "In two months, hedge fund short positioning in crude oil futures has gone from above 35% to below 9%."