Published by Global Banking & Finance Review®
Posted on March 23, 2026
2 min readLast updated: March 23, 2026
Add as preferred source on GoogleLast week, hedge funds sharply increased short bets on U.S. and Asian emerging‑market stocks while rotating into European equities, with global net selling hitting levels not seen since April 2025, Goldman Sachs says.
By Nell Mackenzie
LONDON, March 23 (Reuters) - Hedge funds last week piled into bets against U.S. shares and emerging markets stocks in Asia, while wagering that European shares would rise, said a Goldman Sachs note to clients seen by Reuters on Monday.
Global stocks selling reached new highs last week, the largest net selling since April 2025 as speculators shorted equities for the fifth straight week, the note from Friday showed.
A short position makes money when prices fall.
Global shares slumped for a third week in a row last week, while bond yields climbed on fears the Iran war would keep upward pressure on oil prices and spark inflation.
(Reporting by Nell Mackenzie; Editing by Dhara Ranasinghe)
Hedge funds are betting against U.S. stocks due to concerns over inflation and rising bond yields, which have pressured global equities.
Hedge funds are shifting investments to European shares while reducing exposure to U.S. and emerging markets stocks in Asia.
Hedge funds hold long positions mainly in consumer staples and energy stocks, expecting prices to rise in these sectors.
Hedge fund stock pickers gained 0.47% between March 13-19 but have lost 3.85% overall in March, remaining slightly positive for the year.
Hedge fund gross leverage declined to 309.8% for the week, indicating lower trading activity.
Explore more articles in the Finance category
