Hedge Funds Buying the Dip Offer Glimmer of Hope for Markets
- US single stocks saw most net buying since March: Goldman
- Stocks still costly, ‘but you can tell yourself it’s a deal’
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Behind the scenes of Monday’s trillion-dollar selloff, big-money investors were doing something usually reserved for the retail crowd: buying the dip.
While newbie investors bailed, hedge funds that make both bullish and bearish equity wagers snapped up individual US stocks at the fastest pace since March, reversing a months-long selling spree, data compiled by Goldman Sachs Group Inc.’s prime brokerage show. Separate JPMorgan Chase & Co. analysis showed institutional investors scooped up $14 billion of shares on net during the downdraft, which lopped 3% off the S&P 500 Index.