Hedge Fund and Mutual Fund Equity Exposure In a sign of optimism about the current economic climate, hedge funds and mutual funds have collectively increased their stakes in U.S. equities, which paints a picture of growing confidence in the U.S. stock market. Image: Goldman Sachs Global Investment Research
Hedge Fund Gross and Net Leverage Hedge fund leverage has been steadily increasing, potentially amplifying market movements and exacerbating sell-offs. In low-liquidity environments, highly leveraged hedge funds can significantly magnify market shocks. Image: Goldman Sachs Global Investment Research
Magnificent Seven Stocks – Change in Number of Hedge Fund Owners During the fourth quarter of 2024, hedge funds reduced their exposure to the “Magnificent Seven” stocks as the weight of these stocks in portfolios reached record levels. Image: Goldman Sachs Global Investment Research
Hedge Funds – Net Buys Hedge funds continue to hit the sell button, resulting in significant outflows over the past 3 months. Image: BofA Securities
Hedge Funds’ Cyclical vs. Defensive Positioning During economic expansion, investors favor cyclicals over defensives. The current low hedge fund exposure to cyclical vs. defensive sectors may present a potential opportunity for contrarian investors. Image: BofA Global Research
Equities – Hedge Fund Client Four Week Average Net Flows Last week, BofA’s hedge fund clients were net buyers of equities for the first time in 10 weeks. Image: BofA Securities
U.S. Dollar Exposure of Currency Hedge Funds Will hedge funds turn bullish on the U.S. dollar? Image: J.P. Morgan
Hedge Fund Net Leverage Aggregate hedge fund net leverage remains high compared to the average level. Image: Goldman Sachs Global Investment Research
Antifragile Assets – 10-15Y Government Bonds, HFR Hedge Funds Index and Gold, Total Returns Should investors favor Chinese government bonds? Image: Gavekal, Macrobond
Rolling 6-Month Excess Return of Hedge Fund VIPs vs. S&P 500 The most popular hedge fund long positions have largely underperformed the broader market over the past 12 months. Image: Goldman Sachs Global Investment Research
Global Macro Hedge Funds’ Net Exposure to U.S. 10-Year Treasury Bond In terms of positioning, global macro hedge funds are currently long U.S. Treasuries. Image: Nomura