Amid the elevated volatility, hedge funds increased their short activity, while focusing on quality stocks, according to Goldman Sachs' prime brokerage data.
The Wall Street firm noticed a pickup in shorting macro-related securities this week. Specifically, hedge funds have been shorting exchange-traded funds in large cap equity, sectors and credit categories for three sessions in a row this week, Goldman said. Macro products are more sensitive to political or economic events, and the increased shorting activity could mean that hedge funds are bracing for more tightening from the Federal Reserve as these securities typically are hurt by rising rates.
The strategist expects the higher-for-longer interest rate regime poses a direct threat to company profitability. The firm screened the S & P 500 for stocks with low leverage, high interest coverage and low EBITDA growth variability. Costco , Cisco and Cadence Design Systems were some of the stocks recommended. Underweight cyclicals Hedge funds have been moving away from cyclical stocks — those that ebb and flow with the strength and weakness of the broader U.S. economy.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
David Solomon throws party for ex-Goldman Sachs bankers \u2014including Lloyd BlankfeinThe pair were spotted chatting and the overall mood of the evening was collegial and friendly, sources told On the Money.
Baca lebih lajut »
Construction start set for Goldman Sachs' Dallas campusBreaking news and exclusive reporting about real estate, commercial development and housing trends in Dallas, Collin County, North Texas and beyond.
Baca lebih lajut »
Goldman Sachs sees more than 1% growth for euro area in 2024Goldman Sachs sees more than 1% growth for euro area in 2024
Baca lebih lajut »
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH, XRP move around as market volatility resumesBitcoin (BTC) price is showing that volatility could be coming back to the market, with the same case going for Ethereum (ETH) price as the two giants recently
Baca lebih lajut »
USD/JPY demonstrates volatility squeeze near 149.00 after a flash crashThe USD/JPY pair trades back and forth in a narrow range around 149.00 in the early New York session. The volatility of the pair contracts after Tuesd
Baca lebih lajut »
Sui price volatility could resume as Foundation withdraws 117 million SUI tokens from external market makersSui (SUI) price has been trading within a narrow range, not giving actionable room for longs and shorts to get value for their bets. From an onlooker’
Baca lebih lajut »