Hedge Funds Flock to US Stock Rally, Setting Record Pace - Goldman Sachs
Hedge funds aggressively bought US stocks at the fastest pace in two years, fueling a stock rally driven by hopes of a prolonged pause in US central bank rates. Global funds engaged in the largest five-day buying spree since December 2021, leaving some caught in a squeeze as short positions became too expensive to hold. Hedge funds increased their long positions in information technology stocks, reaching the highest level in eight months, while also favoring consumer discretionary companies. Health care and financial stocks were net sold. The largest hedge fund buying was focused on North America, while Europe and Asia (excluding Japan) saw net short positions.