Hedge funds left behind as stocks, bonds scored best week of 2023, data shows

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Joseph Adinolfi is a markets reporter at MarketWatch.

Hedge funds and other sophisticated investors were caught off guard by last week’s powerful rebound in stocks and bonds, with many missing out on the best week for markets this year.

Aggregate net-short positioning in six different types of Treasury-linked standardized futures contracts had surpassed 6 million contracts, the data showed. In a note from Friday, Goldman’s prime desk said that hedge funds bought U.S. stocks at the fastest pace since December 2021 last week as the sudden turnaround that followed the Federal Reserve’s November policy meeting forced them to either play catch up, or to close out short bets at a loss.

 

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