Hedge Funds Selling Industrials at a Record Pace, Goldman Says
- Concerns on US trade tariffs lead to wariness on the sector
- Selling points to ‘capitulatory behavior’ in sector: Goldman
ndustrials was the most net-sold US sector last week.
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Hedge funds are rapidly unwinding their bets in industrials stocks, and rotating into the corners of the market exposed to commodities, such as energy and materials, amid growing geopolitical risks and concerns about economic slowdowns in the US and China.
Industrials was the most net-sold US sector last week, according to Goldman Sachs Group Inc.’s prime brokerage desk report. More strikingly, the risk unwinds in the group in total dollar terms since July 11 were the largest on record over a two-week period, the report said, noting that it points to “capitulatory behavior” in the space, Vincent Lin wrote in the note to clients.