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Hedge funds sell financials as economic outlook worsens
Hedge funds have increased selling of financial stocks as US economic growth shows signs of weakness and the sector approaches a key technical level.
Despite the financial sector posting its best weekly gain in 2024, hedge fund managers posted net sales for the third week in a row – the biggest net selling period in two months – data compiled by Goldman Sachs Group Inc.main brokerage desk for the week ending May 10. Funds have shorted the sector in 14 of the last 16 weeks. Capital markets, financial services and insurance were some of the hardest hit subsectors across all areas, excluding mortgage REITs, with net sales during the period.