Plenty Of Exposure, Zero Conviction: Goldman's Traders Dissect All The Latest Hedge Fund Positioning And Flows

Last week was the week hedge funds finally gave up.

After two months of what we called a historic degrossing that somehow kept stopping just short of a true flush, Goldman's prime brokerage data show US fundamental long/short funds cut gross leverage by 8.7 points in a single week, the biggest weekly drop since Covid in March 2020, while net leverage fell 3.7 points, the most since the week of Liberation Day, to just 43.3%. That is the 0th percentile on a five-year lookback. Put differently, US stock pickers have not been this lightly positioned at any point in the past five years!

The Biggest Degross Since Covid