Systematic hedge funds ramped up equity exposure at a historic pace last week, with Goldman Sachs estimating net purchases of around $86bn over five consecutive trading sessions, according to a report by Bloomberg.
The surge reflected intensified activity among trend-following strategies, such as Commodity Trading Advisors (CTAs), which rely on quantitative signals and price momentum rather than company-specific fundamentals to guide allocations.
The acceleration in buying came as global equity markets hover near all-time highs, supported by cautious optimism that geopolitical tensions in the Middle East could ease in the near term.
Goldman’s analysis highlights that recent CTA demand ranks among the strongest on record, both in absolute terms and in speed of execution. Since the start of April, systematic funds have largely positioned for further upside in equities following a broader market rebound.
The bank’s models suggest there may be additional room for inflows, with as much as $70bn in further equity purchases projected if current trends persist.
