NEW YORK (Reuters) - U.S. hedge funds last week bought and sold the most stock in more than 10 years amid wild swings in GameStop Corp (NYSE:GME) shares that many had bet against, but their market exposure to stocks is still near record levels, according to an analysis by Goldman Sachs (NYSE:GS) Inc.
"According to Goldman Sachs Prime Services, this week represented the largest active hedge fund de-grossing since February 2009. Funds in their coverage sold long positions and covered shorts in every sector," the investment bank wrote in a note late Friday.
"Despite this active deleveraging, hedge fund net and gross exposures on a mark-to-market basis both remain close to the highest levels on record, indicating ongoing risk of positioning-driven sell-offs."