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Investing.com -- Hedge funds sold energy stocks last week at the fastest pace since September 2024 and the second-quickest rate in the last 10 years, according to a Goldman Sachs note.
The massive sell-off coincided with a significant drop in crude prices, which tumbled over $10 as Middle East tensions eased following a cease-fire between Israel and Iran. Oil prices remain well below their recent peak of around $81 and experienced further volatility on Friday amid reports of increased supply from OPEC+.
Starting June 23, hedge funds sold energy-related company stocks across all major regions, with selling focused primarily on North America and Europe. The Goldman Sachs note, sent to clients on Friday, indicated that in Europe specifically, hedge funds added short positions while abandoning long bets.
The sell-off encompassed shares of oil, gas and consumable oil companies as well as energy equipment and services firms, making it the largest exodus from the sector in almost a year and the second largest in the past decade.
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