Systematic hedge funds ramped up equity exposure at a historic pace last week, with Goldman Sachs estimating net purchases of around $86bn over five consecutive trading sessions, according to a report by Bloomberg.
The surge reflected intensified activity among trend-following strategies, such as Commodity Trading Advisors (CTAs), which rely on quantitative signals and price momentum rather than company-specific fundamentals to guide allocations.
The acceleration in buying came as global equity markets hover near all-time highs, supported by cautious optimism that geopolitical tensions in the Middle East could ease in the near term.
Goldman’s analysis highlights that recent CTA demand ranks among the strongest on record, both in absolute terms and in speed of execution. Since the start of April, systematic funds have largely positioned for further upside in equities following a broader market rebound.
The bank’s models suggest there may be additional room for inflows, with as much as $70bn in further equity purchases projected if current trends persist.
Yen carry trade risks mount
Hedge funds and other leveraged investors face renewed risks from the yen carry trade as Japan moves further away from decades of…
More
Valour launches first crypto hedge fund using Neuronomics AI strategy
Valour, the digital asset investment products subsidiary of DeFi Technologies, has launched its first hedge fund as it expands beyond…
More
SocGen targets strong prime brokerage growth
Societe Generale is planning to significantly expand its prime brokerage business as part of Chief Executive Officer Slawomir Krupa's…
More