Despite a slight dip of 0.6% in the S&P 500 last week, investors are showing increasing confidence, particularly hedge funds (HFs). According to a report by Goldman Sachs, hedge funds net bought U.S. equities for the second consecutive week, reflecting a strong “risk-on” sentiment. This marked shift came after a softer-than-expected CPI inflation report, ahead of the Federal Reserve’s next meeting.
Goldman Sachs noted that long positions significantly outpaced short sales by a ratio of 1.4 to 1. The majority of net buying activity was concentrated in macro products such as indices and ETFs, with long positions leading the charge. ETF shorts saw a decline, including notable short covering in large-cap, small-cap equities, and Asia-Pacific ETFs. Individual stock picks were also part of this buying spree.
Key Takeaways:

Hedge Fund Activity: Net buying of U.S. equities for the second consecutive week.
Market Sentiment: Strong risk-on behavior as long positions dominate over short sales.
ETF and Stock Picks: Focus on large and small-cap stocks, as well as ETFs tracking global markets.

For further insights on ETF holdings and market activity, you can refer to the ETF Holdings and Market Biggest Gainers APIs for real-time data.