Goldman Sachs Says Hedge Funds Scooping Up Stocks at Highest Rate Since Last Year: Report

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.

Generated Image: Midjourney