Hedge funds led a charge by professional investors to unwind bearish wagers and snap up stocks this week, as the S&P 500 saw a 2% gain on Wednesday, according to a report by Bloomberg.
Hedge funds led a charge by professional investors to unwind bearish wagers and snap up stocks this week, as the S&P 500 saw a 2% gain on Wednesday, according to a report by Bloomberg.
The report cites data from Goldman Sachs Group’s prime broker as revealing that nominal net purchases reached the highest level seen in more than three months.
Following an incredibly difficult first six months of the year, during which many managers adopted a bearish stance on equities cutting their exposure to the lowest level since the global financial crisis of 2008, they are now under intense pressure to keep pace with a stock rally that has seen the Nasdaq 100 put on 20% since hitting its bear-market low.
Client data compiled by Goldman analysts reveals that macro products, such as index and exchange-traded funds, dominated hedge fund buying on Wednesday, with technology firms and banks seeing the most interest among buyers of single stocks.
