Hedge funds pile into bearish Japanese stock bets, Goldman Sachs says
The Nikkei on August 5 faced the worst day for the index since Black Monday in 1987
11 August 2024 - 14:20
byCarolina Mandl
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A man walks past an electronic screen outside a brokerage in Tokyo, Japan March 21, 2024. File photo: REUTERS
New York — Hedge funds added bearish bets in Japanese stocks at the fastest pace in over five years for a week between August 2 and August 8, as the Nikkei on August 5 faced the worst day for the index since Black Monday in 1987, Goldman Sachs said in a note on Friday.
The bank said equity long/short hedge funds added 1.7 shorts, or bets stocks will fall, for each long position sold for the week between August 2 and August 8.
Japanese stocks collapsed on Monday amid a sell-off triggered by economic concerns and the unwinding of a popular yen trade that was financing investment in stocks, which reverberated across markets worldwide.
Portfolio managers net sold Japanese stocks in four of the five-trading day week finished on August 8, as Tuesday was the only day they bought more shorts, than added shorts.
Goldman Sachs said hedge funds’ net exposure to Japanese equities was on Thursday at 4.8%, down from 5.6% a week earlier.
As the turmoil spread overseas, hedge funds for the fourth consecutive week continued bearish on global equities, adding more short positions, the bank added.
One of the biggest prime brokers worldwide, Goldman Sachs, tracks the flows of its hedge fund clients to report on trends.
Global equity fundamental long/short hedge funds were down 1.34% for the week amid the market rout, while systematic long/short funds rose posted gains of 0.77%.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Hedge funds pile into bearish Japanese stock bets, Goldman Sachs says
The Nikkei on August 5 faced the worst day for the index since Black Monday in 1987
New York — Hedge funds added bearish bets in Japanese stocks at the fastest pace in over five years for a week between August 2 and August 8, as the Nikkei on August 5 faced the worst day for the index since Black Monday in 1987, Goldman Sachs said in a note on Friday.
The bank said equity long/short hedge funds added 1.7 shorts, or bets stocks will fall, for each long position sold for the week between August 2 and August 8.
Japanese stocks collapsed on Monday amid a sell-off triggered by economic concerns and the unwinding of a popular yen trade that was financing investment in stocks, which reverberated across markets worldwide.
Portfolio managers net sold Japanese stocks in four of the five-trading day week finished on August 8, as Tuesday was the only day they bought more shorts, than added shorts.
Goldman Sachs said hedge funds’ net exposure to Japanese equities was on Thursday at 4.8%, down from 5.6% a week earlier.
As the turmoil spread overseas, hedge funds for the fourth consecutive week continued bearish on global equities, adding more short positions, the bank added.
One of the biggest prime brokers worldwide, Goldman Sachs, tracks the flows of its hedge fund clients to report on trends.
Global equity fundamental long/short hedge funds were down 1.34% for the week amid the market rout, while systematic long/short funds rose posted gains of 0.77%.
Reuters
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