Hedge Funds US Stock Trading at Very Fast Rate

Since January, this is the fastest Hedge Funds US Stock trading rate experienced this year, affecting investment decisions.

Following five consecutive weeks of net purchasing, hedge funds sold U.S. equities at a rate not seen since early January, representing a substantial shift in investment behavior. 

The report by the prime brokerage of Goldman Sachs emphasized this shift in momentum, noting that the sell-off coincides with recent indications of favorable economic growth and a persistent position taken by the Federal Reserve, which suggests that interest rates might persist at elevated levels for a prolonged duration.

According to the report, net selling was observed for macro products (including ETFs and indexes) and individual equities.

Macro products were net sold for the first time in six weeks during the previous week. In contrast, single equities experienced their third consecutive week of net sales, representing the highest notional net selling observed thus far this year. 

The week ending May 24, they witnessed extensive selling activity in all eleven sectors of the United States, with real estate, energy, information technology, financials, energy, and materials accounting for the most severe decline. Mainly, cyclical sectors experienced their most substantial notional net selling since December. 

The industrial sector was significantly affected, witnessing net selling for eleven consecutive trading sessions. During these two weeks, the machinery, ground transportation, professional services, and passenger airline sectors collectively recorded the highest net selling volume in over a decade.