Hedge funds sell global stocks at fastest pace in 13 years

Investing.com -- Hedge funds sold global stocks at the fastest pace in 13 years during March, according to data from Goldman Sachs Group Inc.'s prime brokerage unit. The selling marked the second-largest pace since the bank began tracking the data in 2011.

The accelerated selling was primarily driven by an increase in short sales, reflecting concerns about further stock market weakness as fighting continues in Iran. The MSCI All-Country World Index declined 7.4% in March, recording its worst monthly performance since 2022. The S&P 500 Index fell 5.1% during the same period.

Fast-money investors used exchange-traded funds to express their negative outlook on the stock market. Short positions in large-cap equity ETFs contributed to a 17% increase in short positions across US ETFs.

In the US market, hedge fund selling occurred across multiple sectors, with eight of the 11 industries recording net outflows. The selling was particularly strong in industrials, materials and financials, sectors that are closely linked to economic performance.

Fund managers simultaneously shifted into defensive positions, purchasing consumer staples stocks at the fastest rate since July 2025. This buying activity was entirely driven by long positions.

Hedge funds were net buyers of technology, media and telecom stocks for the first time in four months. This buying was driven by investors covering short positions rather than establishing new long positions.

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