Hedge fund guru Barton Biggs, who had been reducing equity exposure late in the summer months, has recently reversed course and has continued to up his exposure since the announcement of the new plan to stem Europe’s debt crisis. 

“This morning, all of the wise men of Europe and the economists are very negative about this European deal that was worked out last week,” Biggs tells Bloomberg. “The general feeling is that the right thing to do is to cut back on risk and that it is going to be a flop, and that all they did was kick the can not very far down the road again. I am inclined to feel differently.” He says that there is “a tremendous amount of money that’s trapped out of stocks”, and that the rally is “going to continue for a while.”

Biggs had reduced his net exposure to equities to about 20% in September. But by mid-October, it was up to 65%, and now it is at 80%, Bloomberg reports. He’s particularly high on certain tech sector and industrial sector picks.