Goldman Sachs says hedge funds are using the U.S. stock market rally to reduce risk
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The analysis by the Goldman Sachs team led by Vincent Lin shows that as the S&P 500 Index rapidly rebounded and reached a record high last week, the total size of hedge funds' long and short equity positions also recorded the largest decline since last September. In a report sent to clients, they stated: "Last week, the total U.S. long-short leverage decreased by 4.6 percentage points, with U.S. equities seeing the largest nominal reduction in exposure in seven months, mainly driven by unwinding individual stock risk positions." (Bloomberg)
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