Goldman Sachs: Hedge funds bought global stocks for a second consecutive week, with a clear rebound in risk appetite

Odaily Planet Daily News According to Goldman Sachs data, global hedge funds increased their stock holdings for a second consecutive week, reversing the sharp reduction in risk exposure seen at the end of July, indicating that institutional investors' risk appetite is warming up.

The report shows that overall hedge fund trading activity rose to its highest level in seven weeks, with long buying exceeding short selling at a ratio of 1.4:1. At the same time, single-stock trading saw its first net buying in nearly a month, suggesting that fund managers are beginning to increase individual stock risk exposure again.

In terms of sector allocation, the materials sector emerged as one of the areas with the strongest capital demand, recording its largest short-covering rally in nearly two years. Goldman Sachs stated that recent improvements in market sentiment have accelerated the unwinding of previously established short positions, further boosting the performance of related sectors.

Earlier, amid concerns over economic growth, heightened market volatility, and policy uncertainty, hedge funds significantly reduced their stock positions at the end of July. This recent wave of consecutive buying indicates that some institutions are once again betting on a rebound in risk assets.