BofA Merrill Lynch strategist Mary Ann Bartels is out with her quarterly hedge fund monitor this week, taking a look at what the funds did in Q4. The biggest takeaway, according to Bartels: "Hedge Funds are fully invested with cash levels down to 4.6% in 4Q’12." All in. Below is the key section from the BAML report: Based on the quarterly 13F filings and estimated short positions of the equity holdings of 895 funds, we estimate that hedge funds raised net exposure by 10% to $418 billion notional in 4Q12 – setting a new record.