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G Sachs: Hedge Funds Buy US Stocks at Fastest Pace in Six Months
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The S&P 500 has risen for nine consecutive weeks, marking its longest winning streak since 2023. Meanwhile, the tech-heavy Nasdaq 100 has gained more than 20% so far this year. According to G Sachs prime brokerage, as the S&P 500 extended its historic rally, hedge funds bought US equities at the fastest pace in six months last week. In a client note, G Sachs traders said the activity was mainly driven by long purchases in indices and exchange-traded fund (ETF) products, as well as short covering. Short positions in US-listed ETFs declined for a second consecutive week, falling by 0.6%. The latest hedge fund positioning data indicate a significant shift from the defensive stance observed by G Sachs trading desk in mid-May. At that time, traders noted that amid rising bond yields and higher-than-expected inflation data, hedge funds had taken profits in chip stocks and increased macro short positions. G Sachs traders said financial stocks were the biggest beneficiaries of last weeks sector rotation, attracting the largest net buying in nearly six months. The ratio of long buying to short selling was about 6.5 to 1, led by payment-related shares, followed by banks. Part of the buying was offset by selling in consumer finance and capital markets stocks. The G Sachs team noted that despite the recent inflows into financial stocks, positioning in the sector remains heavily underweight. The team said that both gross and net allocations to financials, as a percentage of total US prime brokerage exposure, remain broadly within the lowest 1% range over the past five years.(da/u) Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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