Financial services giant Goldman Sachs reportedly says hedge funds are scooping up stocks at a rate not seen since 2024.
In a note to investors, Goldman Sachs says hedge funds bought global equities last week at the quickest pace since November 2024, some seven months ago, reports Reuters.
The buying spree comes as stock markets ended the month with their strongest May performance in decades. The S&P 500 (SPX), for example, increased over 6% in May, the largest monthly increase since November 2023, and the best performance for the month of May since 1990.
Goldman Sachs says hedge funds closed the week being bullish in every global region, with North America and European markets seeing the most interest.
Hedge funds were most aggressive in the technology sector, buying the largest weekly number of net long positions in tech companies in over five years. The buying was concentrated on firms involved in the artificial intelligence industry, including semiconductor manufacturers, technology hardware producers and electrical equipment companies.
North American tech companies were favored by hedge fund trades, followed by European tech firms.
The stocks global hedge funds bought up in the European sector also included consumer discretionary, financial, health care and communications companies.
Goldman Sachs says hedge funds primarily bought single stocks but also made some long trades in stock indexes, expecting asset prices to increase.
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
