Global hedge funds' exposure to US banking stocks has hit a near 10-year record low as the turmoil in the sector triggered by the demise of Silicon Valley Bank and Signature Bank, and the 'rescue' of Credit Suisse by rival UBS, prompted managers to sell their positions, according to a report by Reuters.

The report cites Goldman Sachs' prime services weekly report as revealing that investors have also cut their exposure to credit to the lowest level in nearly five years as concerns over a potential credit crunch have grown.

"Financials were net sold in eight of the past nine weeks and this week saw the largest notional net selling in more than a year, driven by short and long sales," the report said.