Hedge funds are aggressively buying stocks, according to a new Goldman Sachs report. This buying frenzy is the most intense since November 2024.
Record-Breaking Purchases
Goldman Sachs revealed in a note to investors that last week saw the highest rate of hedge fund equity purchases globally since November 2024. This surge comes after a remarkably strong May for the stock market. The S&P 500, for instance, saw its best May performance since 1990, jumping over 6%.
Where’s the Money Going?
The buying spree was widespread, with hedge funds showing bullishness across all global regions. North America and Europe were the top destinations for investment.
Tech Takes the Lead
The tech sector was a clear favorite, experiencing the highest weekly net long positions in over five years. Artificial intelligence (AI) related companies, including semiconductor manufacturers, hardware producers, and electrical equipment companies, were particularly attractive. North American tech firms led the charge, followed by their European counterparts.
Beyond tech, European investments also included consumer discretionary, financial, healthcare, and communications companies.
Investment Strategy
Goldman Sachs noted that hedge funds primarily focused on individual stocks, but also made some index-based long trades, betting on rising asset prices.
