Hedge Funds Post Largest Net Short on Global Equities in 13 Years: Goldman Sachs

Source: https://beincrypto.com/hedge-funds-short-stocks-record/

Goldman Sachs prime brokerage data shows hedge funds sold global equities at the fastest pace in 13 years in March, he second-largest selling pace since Goldman started tracking this in 2011.

Short sales outpaced long purchases by a ratio of 7.6 to 1, with 76% of those shorts concentrated in index and ETF products. US-listed ETF shorts rose 17.2%, led by large-cap equity ETFs. Gross leverage hit a near-record 312.5, while net leverage dropped, meaning funds restructured heavily toward shorts rather than reducing overall exposure.

The MSCI All-Country World Index had its worst monthly performance since 2022, down 7.4%. The contrarian read: with positioning this extreme, any positive catalyst such as ceasefire, Fed pivot, oil drop could trigger a violent short squeeze.