Hedge funds have had their biggest trading week in a year, in terms of notional trading volume, placing aggressive equity bets, both long and short, according to a report by Bloomberg.
Hedge funds have had their biggest trading week in a year, in terms of notional trading volume, placing aggressive equity bets, both long and short, according to a report by Bloomberg.
The report cites prime brokerage date from both Goldman Sachs and Morgan Stanley as highlighting that funds have been using macro products such as index futures and ETFs to up their short sales while also buying single stocks in the technology and healthcare sectors in particular.
While the trading activity marks a turnaround from what hedge funds have been doing for most of the year – unwinding risky bets in the face of heightened market volatility, it also suggests that managers are keen to pick up bargain stocks but also concerned about the market’s broader direction.
