Hedge funds cut equity positions at fastest pace in two months: Goldman Sachs

Hedge funds have been trimming their equity positions at the quickest rate in two months, according to Goldman Sachs' Prime Services desk. This selling activity, which represents a -2.3 standard deviation move compared to the past year, saw long sales outpacing new short positions by a ratio of 1.8 to 1. The most significant selling was observed across North America and Asian emerging markets, with information technology being the hardest-hit sector, posting its largest percentage de-grossing in over two years.

Energy, on the other hand, attracted the most buying, with its largest net inflows in nearly four years. Overall, net leverage across the desk's book has dropped to 76.8%, placing it in the 27th percentile of the past year, indicating that positioning was not stretched prior to the recent selling activity.

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