By Nell Mackenzie LONDON, March 23 (Reuters) - Hedge funds last week piled into bets against U.S. shares and emerging markets stocks in Asia, while wagering that European shares would rise, said a
Hedge Funds Increase Bets Against U.S. Stocks While Backing Europe, Says Goldman Sachs
Hedge Fund Strategies and Market Movements in March 2025
By Nell Mackenzie
LONDON, March 23 (Reuters) - Hedge funds last week piled into bets against U.S. shares and emerging markets stocks in Asia, while wagering that European shares would rise, said a Goldman Sachs note to clients seen by Reuters on Monday.
Global stocks selling reached new highs last week, the largest net selling since April 2025 as speculators shorted equities for the fifth straight week, the note from Friday showed.
A short position makes money when prices fall.
Global shares slumped for a third week in a row last week, while bond yields climbed on fears the Iran war would keep upward pressure on oil prices and spark inflation.
Key Findings from Goldman Sachs Note
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Trading Activity and Sector Trends
- Index tracking products, like ETFs, as well as single stocks were both net sold, said Goldman.
- Most global sectors were on balance more sold than bought, said Goldman, led by consumer discretionary, tech, and financials.
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Long Positions in Specific Sectors
- Consumer staples, which people need week-to-week, and energy stocks were the only stock sectors where hedge funds held long positions, betting that prices would rise.
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Regional Market Bets
- Hedge funds ditched long positions and added shorts in emerging markets Asia, said the bank.
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Performance of Hedge Fund Strategies
- Hedge fund stock pickers posted a 0.47% rise in performance between March 13 and March 19, many reaping profit from their long bets said Goldman.
- Stock pickers have lost 3.85% so far in March, but remain up 0.16% for the year to date.
- Systematic stock traders made money on short bets and are up just over 6% for the year.
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Gross Leverage Trends
- Gross leverage, an indication of how much hedge funds are trading, declined to 309.8% for the week, it said.
(Reporting by Nell Mackenzie; Editing by Dhara Ranasinghe)
