Hedge fund stock buying hits $86 billion as Iran peace hopes, Goldman data shows

Hedge Fund Stock Buying Hits $86 Billion Amid Iran Peace and Market Highs

By Nell Mackenzie

Record Hedge Fund Activity and Market Trends

LONDON, April 17 (Reuters) - Systematic hedge funds boughts stock at a record pace in the last five trading sessions, adding $86 billion of stock exposure, said a Goldman Sachs note published late Thursday and seen by Reuters on Friday shows.

How Systematic Hedge Funds Operate

Such hedge funds use algorithms to ride market trends until they peter out and use market signals rather than views on the economic aspects of the company stocks they trade.

Global Stock Market Performance

World stocks held near record highs on Friday, set for their a third straight week of gains, as investors awaited a crucial weekend that could pave the way for a near-term resolution to the Middle East war. 

Key Insights from Goldman Sachs Data

Key points from the Goldman Sachs data:

Historic Trading Demand from CTAs

• The last five sessions have garnered one of "the largest in history" trading demand from CTAs (Commodity Trading Advisors), or hedge funds that ride market trends.

Systematic Hedge Funds as Equity Buyers

• Since markets turned around at start of April, hedge funds -- particularly those that trade systematically -- have been equity buyers, betting that asset values would rise.

Record-Breaking Buying Speeds

• The rate at which speculators have bought global equities over the last week is in the top five buying speeds of all time.

Future Stock Purchases Projected

• Goldman Sachs calculations estimate that these speculators could continue to buy stocks and purchase an additional $70 billion of the next five sessions.

Previous Highs in CTA Stock Buying

• The last time global CTAs bought stocks with this fervor was in August 2024, November 2023 and September 2019.

(Reporting by Nell Mackenzie; Editing by Dhara Ranasinghe)