Hedge funds shifted back into net selling of global equities last week, ending a five-week run of net buying, according to data from Goldman Sachs' Prime desk led by Vincent Lin. The desk's figures show that short sales outpaced long purchases by a ratio of 1.3 to 1.
Regionally, North America and Europe led the outflows, while Asian developed markets stood out as the only major region that was net bought during the period. The report noted that all other major regions were net sold.
Different product types showed divergent behavior. Macro products were net sold for the first time in a month, reversing recent net buying in that category. In contrast, single stocks were net purchased over the same period.
Sector-level flows were somewhat mixed. Of the 11 global sectors tracked, seven were net purchased overall. Measured in dollar terms, the largest buying interest went into financials, materials and energy. By contrast, industrials, information technology and utilities were the sectors with the largest net sales.
The Goldman Sachs Prime desk data provide a snapshot of hedge fund positioning across regions, product types and sectors for the week in question. The metrics highlighted in the report include the relative balance of short versus long activity and the dollar magnitude of sector-level flows.
Below is a concise recap of the main flow signals reported:
- Overall: Hedge funds were net sellers of global equities, the first such week in five weeks.
- Shorts vs. longs: Short sales exceeded long purchases by a ratio of 1.3 to 1.
- Regional patterns: North America and Europe led outflows; Asian developed markets were net bought.
- Product types: Macro products were net sold for the first time in a month; single stocks were net purchased.
- Sector detail: Seven of 11 sectors net purchased; financials, materials and energy had the largest dollar inflows; industrials, information technology and utilities saw the largest net selling.
The data reflect the positioning and trade activity recorded by the Prime desk for the week. The report does not provide further commentary within the figures on motivations behind the trades or on subsequent market reactions.