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By Carolina Mandl
NEW YORK (Reuters) -World hedge funds continued so as to add bearish fairness bets to portfolios within the week to Aug. 1 when recent information sparked fears the U.S. financial system is slowing quicker than anticipated, Goldman Sachs mentioned in a notice to shoppers.
It marks the third consecutive week that hedge funds’ bets that shares will fall outpaced the addition of lengthy positions, Goldman mentioned, noting one lengthy place was added for each 3.3 quick bets.
The fell into correction territory on Friday after financial information for 2 consecutive days pointed to a faster-than-anticipated slowdown. Fewer jobs than anticipated have been added and manufacturing exercise dropped. It closed down 2.43%.
Hedge funds decreased their publicity in seven of 11 world sectors. These included financials, industrials, actual property and vitality. Healthcare shares have been additionally offered on the quickest tempo in roughly a yr.
Hedge funds have been unwinding threat bets for a few weeks and on Friday elementary lengthy/quick hedge funds had their worst day since June 2022, with their efficiency falling 1.8% on common, Goldman Sachs mentioned in a separate notice.
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