NEW YORK — Hedge funds executed their fastest global stock buying spree since November 2024 last week, according to a report by Goldman Sachs, as equity markets wrapped up one of the strongest May performances in decades.
The S&P 500 gained just over 6% in May, marking its largest monthly increase since November 2023 and its best May return since 1990. The Nasdaq surged approximately 9.6%, also recording its biggest monthly jump since November 2023 and its strongest May performance since 1997.
According to Goldman Sachs, hedge funds ended the week with net buying across all global regions, led by North America and Europe.
Technology companies saw the highest level of interest, with hedge funds accumulating the largest net long weekly positions in over five years in the sector. The buying was heavily focused on firms integral to the artificial intelligence industry, including semiconductor manufacturers, tech hardware producers, and electrical equipment companies.
Goldman noted that North American tech firms were the primary focus of hedge fund trading activity, followed closely by their European counterparts.
The pan-European equity index delivered a return of over 5% in May. According to the report, hedge funds purchased European equities for the third consecutive week, marking the fastest pace in the past three months.
On a country level, hedge funds recorded the largest net buying activity in Spain, France, Finland, Germany, Sweden, and Denmark, while Ireland, the Netherlands, and Switzerland saw the most significant net selling.
Source: Foreks/ Prepared by: İlayda Gök