Original title: us stocks have the largest short covering since March! Many hedge funds have lost money.
In the past 48 hours, there has been a frenzy on the Reddit forum, Goldman SachsThe rally in retail favorites on Wednesday coincided with the biggest short covering of a single stock in the US stock market since mid-March, prime brokers said. There was moderate buying in US stocks that day, but it was driven by safe-haven funds-short covering outstripped bulls by a ratio of 3 to 1.
A large number of short-selling Meme shares rebounded unexpectedly on Wednesday, pushing up the (GSCBHTBR) of Goldman Sachs, which tracks retail investors. Hot stocks rose 25 per cent yesterday and 61 per cent in the past seven trading days!
Goldman Sachs points out that in 10 of the 11 industries, with the only exception of real estate, there is a net covering of short positions. Communications services, non-essential consumer goods, information technology, health care and energy led the increase.
In such a market, most fund managers did not perform well that day, especially those who adopted long-short stocks (long-short stocks usually hold long positions in stocks with good returns and short stocks with poor prospects). Goldman Sachs said bluntly:
"this is the worst day for hedge funds in nearly three months."
Although hedge funds suffered a lot on Wednesday, it was nothing compared to what happened at the end of January. Goldman Sachs pointed out that if a similar roll appeared in January, it would be about seven times as intense as it was on Wednesday.