Goldman Sachs’ latest report reveals hedge funds aggressively increased global stock purchases last week, marking their most rapid accumulation since November 2024. This surge in risk appetite coincided with historic monthly gains across major indices – the S&P 500’s 6% May rally was its strongest since November 2023 and best May performance since 1990, while the Nasdaq’s 9.6% jump represented its largest monthly advance since 1997. European markets mirrored the trend, with the Stoxx 600 and FTSE 100 rising 4% and 3.3% respectively.
The buying frenzy showed no regional bias, with hedge funds taking net long positions across all major markets. North American and European equities led inflows, reflecting growing confidence in the Fed’s and ECB’s abilities to engineer soft landings. Goldman analyst Vincent Lin noted this demonstrates funds’ increasing comfort with “specific risks” – selectively embracing equities despite macro uncertainties like lingering inflation and geopolitical tensions.
The institutional buying spree contrasts with still-cautious retail sentiment, suggesting professional investors are front-running expected economic stabilization. The concentrated inflows into tech-heavy Nasdaq stocks (up nearly 10% in May) particularly highlight hedge funds’ conviction in the AI growth narrative overcoming rate concerns. As Goldman’s data shows net leverage ratios climbing, the question remains whether this optimism can sustain through summer’s traditional liquidity lulls.
Related topics：
