Goldman Sachs: After hedge funds experienced their largest deleveraging wave in more than three years, trading desks recorded their largest net purchases since November 2020
Goldman Sachs A report from the Delta One trading desk shows that hedge funds experienced their largest concentrated deleveraging in more than three years last week, with the global deleveraging being the most significant since the meme stock frenzy of January 2021.Subsequently, the Goldman Sachss trading desk recorded its largest weekly net buying since November 2020, driven almost entirely by short covering, with net buying observed in both macro products and individual stocks.Among them, the momentum factor (GSPRHIMO) surged 13% in a single day, marking its largest one-day gain in over a decade, as better-than-expected earnings reports from Microsoft and Amazon boosted market confidence. Although leverage levels have rebounded somewhat, they remain in the historically low range.
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