Investing.com — Hedge funds purchased global equities at the largest net dollar amount in four months in the week through June 4, just days before a sharp U.S. market selloff on Friday, according to Goldman Sachs Prime desk data.
Long buying is said to have outpaced short selling throughout the week, with all major regions net bought.
North America and Asian emerging markets led the flows, while single stocks and macro products were both net purchased, driven by long buying activity.
On the sector front, hedge funds net bought consumer discretionary stocks for a fifth consecutive week and across every major global region. Nine out of 11 global sectors were net bought over the period.
The positioning data highlights the ill-timed nature of the accumulation, as U.S. equities suffered a broad selloff on Friday. The Nasdaq Composite fell 4.18%, while the S&P 500 dropped 2.64% and the Dow Jones Industrial Average declined 1.35%.
The sharp reversal came after a period of strong momentum in equity markets, with the S&P 500 having rallied significantly from its March lows on the back of strong first-quarter earnings and optimism surrounding artificial intelligence.
