Hedge funds drove the largest net-buying of Asian equities since 2016 last week, according to a report by Bloomberg citing a note from Goldman Sachs Group Prime Services, with optimism around AI infrastructure firms fuelling demand.
Long positions in both emerging and developed Asian markets significantly outpaced short covering, with an 8.4-to-1 ratio, as investors rotated out of momentum trades and responded to a weakening US dollar. The MSCI EM index is up 11% year-to-date, while South Korea’s Kospi has surged over 30%, boosted by major tech names such as Samsung Electronics Co Ltd and SK Hynix Inc.
Sector-wise, hedge funds were net buyers of technology, industrials, staples, and materials, while selling was heaviest in consumer discretionary, communications services, and financials. US real estate saw the third consecutive week of net sales, marking the fastest pace since September 2022.
