Hedge Funds Post Largest Net Short on Global Equities in 13 Years: Goldman Sachs

Hedge funds are exhibiting extreme bearishness on global equities, with Goldman Sachs data revealing the largest net short positioning in 13 years last month. Short sales significantly outpaced long purchases at a 7.6 to 1 ratio, with a substantial portion concentrated in index and ETF products, particularly large-cap US equity ETFs. While gross leverage increased, net leverage decreased, indicating a strategic shift towards short positions rather than an overall reduction in portfolio size. This aggressive shorting comes as institutional investors have dumped billions in US equities. The extreme positioning raises the risk of a short squeeze, where positive news could trigger a rapid market rally.

(Source：BeInCrypto)