Hedge funds are buying U.S. stocks at the fastest pace in two years, according to a new report from investment bank Goldman Sachs (GS).
Global hedge funds have started to aggressively buy U.S. equities as expectations grow that the U.S. Federal Reserve is done raising interest rates, according to Goldman Sachs.
Over the past week, hedge funds went on the largest five-day buying spree of U.S. stocks since December 2021, according to data released by the American investment bank.
In particular, hedge funds increased their positions in information technology stocks, building their largest stakes in eight months.
Hedge funds also snapped up shares of beaten down consumer discretionary companies such as restaurants and fashion retailers, said Goldman Sachs.
The buying spree among hedge funds comes as all three major U.S. stock indices rose for five consecutive days, with the benchmark S&P 500 index gaining 5% over the past week.
Hedge funds were net sellers of healthcare and financial stocks in recent days, according to Goldman Sachs’ report.