Hedge funds turned bullish on US stocks last week, marking a notable reversal from the previous five weeks of selling, ramping up their buying at the fastest pace since November, according to a report by Bloomberg citing a Goldman Sachs prime brokerage report.
The note reveals that hedge funds recorded the highest net buying of individual stocks in more than three years, with the surge in buying especially pronounced in the information technology sector, where funds made their largest purchases since December 2021.
During what was the second-largest buying spree in the past five years, hedge funds both covered short positions and increased long holdings, with inflows particularly strong in software and semiconductor stocks.
Goldman Sachs’ Vincent Lin, Co-Head of Prime Insights and Analytics, noted that the renewed buying activity indicates hedge funds are now more constructive.
“The activity suggests that hedge funds became more constructive and started leaning into the AI theme following the DeekSeek-induced selloff on 27 January,” he said.
