Hedge funds bet against US financial stocks, reaching record levels - Goldman Sachs

Hedge funds have increased their bearish positions on US financial stocks to the highest level in nearly five years, according to Goldman Sachs. The bank's prime insights & analytics team reported that financials were the most net sold sector on the US prime book this week, driven entirely by short sales. The long/short ratio is at a historical low, indicating a decline in hedge funds' bullish sentiment towards financials. Bank shares have experienced significant declines this year, with the KBW Bank index down nearly 23% and the S&P 500 Banks index falling over 11.26% year to date.