Hedge Funds Swarm Back to Upended Markets With Short, Long Bets
- Goldman clients’ notional trading volume rises to 1-year high
- Morgan Stanley, UBS warn of more CTA selling in coming weeks
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After spending much of 2022 playing defense, professional speculators are reasserting themselves with aggressive equity bets on both the short and long side.
Hedge funds have raised exposure in back-to-back weeks, data from Goldman Sachs Group Inc.’s prime brokerage show, increasing short sales via macro products such as index futures while buying shares of individual firms. The moves resulted in their busiest week by notional trading volume in a year. The same trends were observed by Morgan Stanley, where hedge-fund clients boosted holdings in single stocks in areas such as technology and health care, while adding shorts against exchange-traded funds.