Hedge funds offloaded global equities for the second month in a row this August, with short positions outweighing long purchases at a ratio of 1.2 to 1, according to data from Goldman Sachs’ prime brokerage desk.
The selling pressure grew stronger as the month drew to a close. Global equities were net sold in four straight sessions leading into month-end, and in 10 of the last 12 sessions overall.
Out of the 11 major global sectors, seven came under net selling pressure. The steepest outflows were seen in healthcare, consumer staples, financials, and real estate. Still, there was a small pocket of optimism: individual stocks, taken together, saw modest net buying, while broader macro products continued to face selling.
Short bets against U.S.-listed ETFs climbed 2.1% in August. Funds added to short positions in large-cap equity, energy, industrials, and Asia-Pacific ETFs, while partially offsetting that activity by covering shorts in financials, real estate, and corporate bond ETFs.
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