Hedge funds sell off global stocks at the fastest pace in 13 years

LootboxPhobia · 2026-04-02T22:48:38+00:00

According to Goldman Sachs data, hedge funds sold off global stocks at the fastest pace in 13 years in March, reflecting market concerns over the Iran conflict. The MSCI World Index declined by 7.4%, with multiple sectors in the US stock market experiencing sell-offs, especially industrials and materials. Fund managers shifted to defensive positions, actively buying consumer staples stocks.

LootboxPhobia

2026-04-02 22:48:38

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Investing.com - Based on data from Goldman Sachs Group’s prime brokerage unit, hedge funds sold global stocks in March at the fastest pace in 13 years. This selloff is the second-largest scale of liquidation by the bank since it began tracking the data in 2011.

The acceleration was mainly driven by an increase in short selling, reflecting concerns in the market that Iran’s ongoing conflict will further weaken equities. The MSCI Global Index fell 7.4% in March, marking the worst monthly performance since 2022. The S&P 500 fell 5.1% over the same period.

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Fast-money investors used exchange-traded funds to express their bearish view on the stock market. The short positions in large-cap stock ETFs led to an overall increase of 17% in short positions in U.S. ETFs.

In the U.S. market, hedge-fund selling spread across multiple sectors. Of the 11 industries, 8 recorded net outflows. Selling was particularly strong in the industrials, materials, and financials sectors, which are closely tied to economic performance.

Fund managers also shifted toward defensive positioning, buying consumer staples stocks at the fastest pace since July 2025. This buying activity was entirely driven by long positions.

For the first time in four months, hedge funds became net buyers of technology, media, and telecommunications stocks. This purchase was driven by investors covering short positions rather than establishing new long positions.

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