Hedge Funds Boost Bearish Bets On US Equities Amid Market Jitters

• Hedge funds increased their bearish bets mainly on U.S. stocks last week when the major stock indexes plunged, Goldman Sachs showed in a report. The bank said its clients mostly added short positions while also getting rid of long positions. Among sectors, consumer discretionary, industrials and financials were the most net sold.
• "Hedge funds have been pressing U.S. shorts in five of the past six weeks, and this week's notional short selling was the largest since Sept. 22," Goldman Sachs' prime brokerage team wrote.
• After a tumultuous week for stocks, as Treasury yields hit 16-year highs, all three major U.S. stock indexes posted weekly losses, with the S&P 500 and the Nasdaq registering their largest Friday-to-Friday percentage drops since March.
• Goldman Sachs also said hedge fund managers decided to unwind risk last week, mostly by selling long equity positions. "This week's notional de-grossing activity in Japan – long and short combined – was the largest since December 2021," the bank said.

(Source: Reuters)