"Smart Money" Bears Capitulate: Hedge Funds Cover Single Stock Shorts For The First Time In 19 Weeks

Late this summer, Goldman's Prime Brokerage, the bank's most actionable client-facing division which keeps daily tabs on all the latest hedge fund activity and is happy to share the data with a select group of top clients, started publishing the US Equities Weekly Rundown: a weekly must-read compilation that aims to consolidate the latest positioning and flows intelligence, market themes, and actionable ideas from thought leaders and risk takers across the GS franchise. We find it an indispensable piece for every serious trader as it reveals what Goldman's own traders think and do (not its useless research desk), and below we excerpt from the latest full report for the benefit of our premium and professional readers (full analysis available to our pro subscribers in the usual place).

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The S&P 500 ended flat on Friday and rose for a 7th straight week, as investors continue to digest a dovish Fed pivot, a corresponding move lower in rates, and market implications in the year ahead. Most Short, Renewables, and 12M Laggards were among the biggest gainers on the week, while Expensive Defensives, Bond Proxies, and Mega Cap Tech underperformed.