Hedge Funds Turn Aggressively Bearish on Global Equities
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Hedge funds have ramped up bearish bets on global equities, reaching their highest level of short positioning in over a decade. Data from Goldman Sachs shows that short trades outpaced long positions by a ratio of 7.6 to 1, signaling a sharp decline in investor confidence amid rising geopolitical tensions.
Most of these bearish bets are concentrated in index funds and ETFs, particularly large-cap US equities. At the same time, institutional investors have been pulling billions out of the market, reflecting growing concerns about economic stability and risk exposure. The shift suggests that many funds are repositioning defensively rather than exiting markets entirely.