Hedge funds cut NFLX, keep big bets on MSFT, AMZN, add NVDA
Investing.com -- Trend-following investors currently hold an estimated $150 billion in global equities, representing a historically high level of exposure that ranks in the 96th percentile, according to Goldman Sachs.
These commodity trading advisers (CTAs) showed mixed activity last week, selling approximately $10.5 billion in global equities. The selling was concentrated in Europe, the Middle East, and Africa (EMEA) markets, while there was modest buying activity in U.S. markets.
"The CTA tailwind seems to be behind us – estimates over the next week and month are meaningfully skewed to the downside," Goldman’s Cullen Morgan stated in a note.
Looking ahead, these trend-following investors are expected to sell $200 billion in global stocks over the next month if markets decline. In contrast, they are projected to buy only $38 billion if markets move higher, indicating a significantly asymmetric response based on market direction.
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