Systematic hedge funds have sharply increased their exposure to equities over the past week, deploying $86 billion into the market, according to a note released by Goldman Sachs late Thursday.
The bank said these algorithm-driven investors, commonly referred to as CTAs, purchased stocks at a speed that ranks among “the largest in history” over the last five trading sessions.
Goldman added that since markets began recovering at the start of April, hedge funds—particularly systematic strategies—have been consistent buyers, positioning for continued upside in global equities.
The surge in buying comes as stock markets hover near record highs and look set for a third straight week of gains, with investors closely monitoring developments that could lead to a near-term resolution of the Middle East conflict.
Goldman highlighted that the pace of equity accumulation by CTAs over the past week places it among the top five fastest buying periods on record.
According to the bank’s models, these trend-following funds may continue to increase their positions, with the potential to add another $70 billion in equity exposure over the next five trading sessions.
The intensity of the recent buying activity is comparable to previous periods of aggressive CTA accumulation, including August 2024, November 2023, and September 2019, Goldman noted.