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Hedge fund stock buying hits $86 billion as Iran peace hopes, Goldman data shows.

stock :: 2hrs ago :: source - reuters

By Nell Mackenzie

A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., April 16, 2026. REUTERS/Jeenah Moon

(Reuters) - Systematic hedge funds boughts stock at a record pace in the last five ​trading sessions, adding $86 billion of stock exposure, said ‌a Goldman Sachs note published late Thursday and seen by Reuters on Friday shows.

Such hedge funds use algorithms to ride market ​trends until they peter out and use market ​signals rather than views on the economic aspects ⁠of the company stocks they trade.

World stocks held near ​record highs on Friday, set for their a third ​straight week of gains, as investors awaited a crucial weekend that could pave the way for a near-term resolution to the Middle East ​war.

Key points from the Goldman Sachs (GS.N) data:

  • The last ​five sessions have garnered one of "the largest in history" trading demand ‌from ⁠CTAs (Commodity Trading Advisors), or hedge funds that ride market trends.
  • Since markets turned around at start of April, hedge funds -- particularly those that trade systematically -- have been equity buyers, ​betting that asset ​values would ⁠rise.
  • The rate at which speculators have bought global equities over the last week is ​in the top five buying speeds of ​all ⁠time.
  • Goldman Sachs calculations estimate that these speculators could continue to buy stocks and purchase an additional $70 billion of the ⁠next ​five sessions.
  • The last time global CTAs ​bought stocks with this fervor was in August 2024, November 2023 ​and September 2019.

Reporting by Nell Mackenzie; Editing by Dhara Ranasinghe