Hedge funds tracked by Goldman Sachs reduced their holdings of American stocks for the seventh day in a row on Monday, and the selling amount in the past two trading days reached the highest level since tracking such data in April 2008.
The decline in the stock market has intensified because the market is worried that the Fed's accelerated anti-inflation action may trigger a recession. As the stock market fell, the yield of US Treasury bonds soared, and short-term funds rushed to short.
In a report released on Tuesday, Goldman Sachs said that the short-selling activities of hedge fund customers "surged".
BenjaminDunn, president of AlphaTheoryAdvisors, said, "They say the market is falling further, and the popularity is simply terrible."
Hedge funds have slashed their stock exposure. According to data from Goldman Sachs, their risk appetite is close to a five-year low.
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