Hedge funds have lowest exposure to financials since March 2020 -Goldman
Reuters
Published Dec 11, 2023 10:44
By Nell Mackenzie
LONDON (Reuters) - Global hedge funds sold financial stocks for a 10th week running in the week ending Dec. 8 and now have the lowest exposure to the sector since March 2020, when the COVID-19 crisis roiled markets, a Goldman Sachs (NYSE:GS) note said.
Speculators ditched long positions on insurance stocks while switching out of buy positions and adding short bets on financial services and banks, the note dated Dec. 8 said.
A long position anticipates a stock price increase whereas a short bet anticipates a fall.
Banks including Goldman Sachs and Morgan Stanley (NYSE:MS) initiated 3,000 job cuts at the start of 2023.
In Europe, Barclays (LON:BARC) is considering cutting up to 2,000 back-office jobs in addition to layoffs across its UK retail, corporate and investment bank, a source with direct knowledge of the proposals told Reuters last month, while rival Lloyds (LON:LLOY) has put 2,500 jobs at risk.
A dearth of deal making combined with economic uncertainty would shrink bonus pools and result in further job cuts next year, executives, consultants and headhunters have told Reuters.
Elsewhere, hedge funds working with Goldman Sachs' prime brokerage turned long. Net buying in macroeconomic products reached the highest in nearly five months, the bank said.
America was the most net bought region, while developed markets in Asia was the most net sold.
Technology, financials and staples were the most net sold global sectors, the Goldman note said.
Consumer discretionary, commercial services and real estate were the most globally net bought, it added.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.