According to Goldman Sachs trading department data, hedge funds are once again starting to buy global stocks. Despite overall market fluctuations, these funds are buying technology stocks at the fastest speed in two months.
The Zhitong Finance App learned that data from Goldman Sachs's trading department shows that hedge funds are starting to buy global stocks again. Despite fluctuations in the overall market, these funds are buying technology stocks at the fastest speed in two months.
The trading department wrote in a report that new long positions surpassed short positions last week, while individual stocks showed “the biggest nominal purchase in over a year,” which marks a bullish shift in market sentiment after the hedge fund's first three weeks of sell-off.
Despite investors flocking to safe-haven assets due to the Federal Reserve's postponement of interest rate cuts and rising geopolitical risks, and the Nasdaq 100 index, which is dominated by technology stocks, recorded its worst weekly performance since November 2022, these funds are still buying stocks in droves.
Goldman Sachs traders said that commodity trading advisors (CTAs) and other risk-adjusted investors cleared some of their positions, and CTA reduced their exposure to the S&P 500 from an all-time high of US$48.2 billion to US$34.5 billion.
However, Goldman Sachs said that although the slowdown in monetary easing, global turmoil, and high valuations “may cause the investment environment to continue to fluctuate,” its basic predictions about the economy should support risky assets.