Hedge Funds Rush to Buy Stocks on S&P 500’s Momentum
- Goldman clients post largest two-week purchases since October
- Neutral positioning makes market vulnerable to negative shocks
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Some previously steadfast bears are showing signs of giving in after a seven-month advance put the S&P 500 on the edge of a key chart line.
Hedge funds that make both bullish and bearish equity wagers have snapped up US shares for two straight weeks, with total purchases reaching the fastest pace since October, data compiled by Goldman Sachs Group Inc.’s prime brokerage unit show. The binge followed persistent selling in the previous five weeks.