🚀 ProPicks AI Hits +34.9% Return!Read Now

Hedge funds short US financial stocks at near record levels -Goldman Sachs

Published 11/10/2023, 05:30 PM
Updated 11/10/2023, 05:36 PM
© Reuters. FILE PHOTO: A street sign for Wall Street is seen in the financial district in New York, U.S., November 8, 2021.  REUTERS/Brendan McDermid/File Photo
US500
-
GS
-
BKX
-

By Carolina Mandl

NEW YORK (Reuters) - Global hedge funds built bearish positions this week to the highest level in nearly five years, Goldman Sachs said on Friday, without citing the underlying reasons.

"Financials was the most net sold sector on the U.S.

prime book this week and saw the largest net selling in seven weeks, driven entirely by short sales," the bank's prime insights & analytics team said in a note about trading flows.

The ratio between long and short positions is at a historical low, below 1.7 times. At the beginning of this year, the long/short ratio was at 2.6 times, sharply declining in March in the wake of the regional banking crisis.

© Reuters. FILE PHOTO: A street sign for Wall Street is seen in the financial district in New York, U.S., November 8, 2021.  REUTERS/Brendan McDermid/File Photo

Overall, hedge funds are underweight financials, at the lowest level since May 2020, Goldman Sachs said.

Bank shares have plunged this year. The KBW Bank index is down nearly 23% year to date, while the S&P 500 Banks index fell over 11.26%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.