Goldman: Hedge Funds Sell Global Stocks For Ninth Straight Week, Financials Regain Favor

A Goldman report showed that banks, insurers and trading companies were again in favor with hedge funds, which snapped up their stocks last week at the fastest pace since June 2023. Financials were the most sought-after stocks in Goldman's institutional brokerage unit, which lends to and tracks hedge funds, according to a report released Friday. The bets were almost entirely long positions. The pan-European Stoxx 600 bank index rose about 1.9% in the week ended Friday, while the Dow Jones bank index closed 1.6% lower. The buying was concentrated in North America and Europe, the report said. Hedge funds held long positions in banks, insurers and capital markets companies that facilitated trading. On the other hand, Goldman said, they modestly sold consumer finance companies and mortgage trusts. Overall, hedge funds increased their sell positions in the market at the end of last week, the report added. They sold global stocks for the ninth straight week, at the fastest pace in five months. The bank said that the week's returns for stock-picking hedge funds were 0.42%, helped by a broad market rally. The S&P 500 rose more than 4% last week, while the broadest European index rose 1.85%. Systematic stock traders' returns were negative 0.18% in the week ended Sept. 13, the report said.