Global hedge funds built bearish positions this week to the highest level in nearly five years, Reuters reported.
“Financials was the most net sold sector on the US prime book this week and saw the largest net selling in seven weeks, driven entirely by short sales,”
the Goldman Sachs’s prime insights & analytics team said in a note about trading flows.
Overall, hedge funds are underweight financials, at the lowest level since May 2020, the bank said.
US banks stocks have dropped this year amid the sector’s struggles over the past year and a half.
The KBW Bank index is down nearly 23% year to date, while the S&P 500 Banks index fell over 11.26%.