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Hedge Fund Gross Leverage Hits All Time High As HFs Furiously Short Tech Stocks


by Tyler Durden
Tuesday, May 11, 2021 - 07:15 AM
Hedge funds had another rough week according to Goldman s Prime Brokerage, with the GS Equity Fundamental L/S  Performance Estimate falling -1.68% between 4/30 and 5/6 (vs MSCI World TR -0.33%), driven by alpha of -1.11% – the worst weekly alpha in two months – and to a lesser extent beta of -0.57% (from market exposure and the market sensitivity factor combined). As a result, global fundamental equity L/S hedge funds lost almost two-thirds of their YTD gains in just the past week, bringing their total YTD return to just 0.97% in what is setting up as another dismal year for the 2 and 20 crowd. ....

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A Pile Up Of Epic Proportions: Hedge Funds Short Tech Shares For 10th Straight Day


by Tyler Durden
Tuesday, May 11, 2021 - 11:31 AM
Late on Monday, we made two important observations: i) hedge funds had never been more levered to market moves, with gross leverage at all time highs, as hedge funds strive to extract every last ounce of beta from the market (net leverage was also extremely high, but not record high, and is more a reflection of any given hedge fund s alpha preference).
. and ii) hedge funds had scrambled to short tech shares explaining the recent decline in the Nasdaq, with Goldman Prime pointing out that Info Tech stocks were
net sold for a third straight week and saw the largest week/week $ net selling since last August, and that ....

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The Catalyst For The Next Leg Higher: Buyback Blackout Period Just Ended


by Tyler Durden
Sunday, Apr 25, 2021 - 09:00 PM
Now that even Wall Street s perennial permabull, JPMorgan, has joined most other major banks including Goldman, Deutsche and Morgan Stanley in warning that the coming weeks and months could be treacherous for stocks (DB went so far as predicting a 10%+ correction in the next three months), and saying on Friday that easy equity gains for the broad market are likely behind us and as a result its bullish conviction is now lower , a caution which spooked retail and hedge fund investors alike, with Goldman Prime reported on Friday that its book
saw the largest net selling in 5 weeks (-2.1 SDs), driven by short sales and long sales (4 to 1) and equally by Single Names and Macro Products. ....

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