Goldman Sachs reports hedge funds sold U.S. equities at fastest pace since April

Published 20/10/2025, 11:36
© Reuters.

Investing.com - Goldman Sachs reported that hedge funds sold US equities last week at the fastest pace since early April, despite US stocks finishing higher with the S&P 500 gaining 1.7%.

The selling was primarily driven by short sales in Macro Products and Single Stocks, according to Goldman Sachs’ Prime Brokerage data. US ETF shorts saw their largest percentage increase in over five months, ending a seven-week net buying streak in Single Stocks.

Energy emerged as the most net sold global sector across all regions as WTI crude fell below $60 per barrel for the first time since May. US Financials finished modestly net sold, with managers initially buying the sector through Tuesday before turning to selling on Wednesday and Thursday amid growing concerns over credit quality.

From a flow perspective, both Asset Managers and Hedge Funds ended the week as net sellers, with outflows of $1.7 billion and $2.0 billion respectively. Renewables, Non-Profitable Tech, and Most Short were among the themes that outperformed during the week, while Obesity Drugs, Defense, and Liquid Regional Banks underperformed.

Market participants now look ahead to a busier earnings week with 18% of S&P market cap reporting, along with the delayed September CPI print expected on Friday. The Federal Reserve has entered its blackout period ahead of its October 29 decision, with the S&P implied move through October 24 at 2.31%.

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