Quick overview

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Goldman Sachs data showed hedge funds sold international stocks in March at the fastest rate in 13 years. its premier brokerage division.

The selling pace was the second-highest since the bank started monitoring the data in 2011 . An increase in short sales, which reflects worries about additional stock market weakness as the fighting in Iran continues, was the main cause of the accelerated selling.

The MSCI All-Country World Index had its worst monthly performance since 2022 in March, falling 7.4%. In the same time frame, the S&P 500 Index dropped 5.1%. Exchange-traded funds were used by quick money investors to convey their pessimistic views on the stock market.

The number of short positions in US ETFs increased by 17% as a result of short positions in large-cap equity ETFs. Eight of the eleven industries in the US market saw net outflows from hedge funds. The close-knit industries of financials, materials, and industrials saw especially robust sales.

Hedge funds were net buyers of media, technology, and telecom stocks for the first time in four months. This buying was motivated by investors covering short positions rather than opening new long positions.