Goldman Sachs: Hedge Funds Increase Stock Holdings for Two Consecutive Weeks, Risk Appetite Rebounds

Goldman Sachs data shows that global hedge funds have increased their stock holdings for the second consecutive week, reversing the significant reduction in risk exposure at the end of July, indicating a recovery in institutional investors' risk appetite. The report reveals that the overall trading activity of hedge funds has reached its highest level in seven weeks, with the scale of long positions exceeding that of short positions, resulting in a buy-sell ratio of 1.4:1. For the first time in nearly a month, there was a net purchase of individual stocks, suggesting that fund managers are beginning to increase their exposure to individual stock risks again. In terms of sector allocation, the materials sector has become one of the areas with the strongest demand for funds, experiencing the largest short covering rally in nearly two years. Goldman Sachs states that improved market sentiment has led to a rapid unwinding of previously established short positions, further boosting the performance of related sectors. Previously, due to concerns over economic growth, increased market volatility, and policy uncertainties, hedge funds significantly reduced their stock positions at the end of July. This consecutive buying action indicates that some institutions are re-betting on a rebound in risk assets.