Heavy short sales by hedge funds and disposals by systematic investors have increased the potential for a sharp swing higher for stocks in the event of a de-escalation in the Iran war, according to traders at Goldman Sachs Group Inc. Hedge funds have just cut global equity holdings for a sixth straight week, driven by short sales, Goldman’s prime trading desk said. The latest selling was wide spre...
Heavy short sales by hedge funds and disposals by systematic investors have increased the potential for a sharp swing higher for stocks in the event of a de-escalation in the Iran war, according to traders at Goldman Sachs Group Inc. Hedge funds have just cut global equity holdings for a sixth straight week, driven by short sales, Goldman’s prime trading desk said. The latest selling was wide spread, with net disposals across all major regions. In Europe, short exposure in macro products that trade on broader economic themes has reached 11%, a 10-year high, the team led by Vincent Lin wrote in a weekly recap of market data through March 26. Read more: Hedge Fund Selling Shows Signs of Capitulation: Equity Insight What still resembled a rather shallow pullback in response to the Middle East conflict at the start of last week, has now pushed stocks closer to technically oversold levels. The Nasdaq 100 is in a formal correction, after dropping more than 10% from its peak, and the S&P 500 index is close to joining it. Europe’s Stoxx 600 Index is down almost 9% in March, on course for its worst month in six years. In a separate note on hedge funds’ US exposure, the Goldman team said “some signs of capitulation are starting to emerge,” suggesting the funds were close to their maximum levels of pessimism about the market. On a trailing six-week basis, US net selling was the third-largest over the past decade. The selling approached levels seen during the Covid selloff, while still short of the April 2025 “Liberation Day” episode, they said. Read more: Stats Offer Modest Comfort After Five-Week Slide: Equity Insight Meanwhile, the group of trend-following investors, or CTAs, has sold about $190 billion over the past month and is now short by about $50 billion across global equities. “The systematic community is running out of steam,” wrote Goldman’s Cullen Morgan . “Asymmetry lives to the upside — over the next month, we estimate CTAs are buyers in every scenario.” The bank...
Richard Drury Stock futures edged higher Monday morning as investors weighed a complex geopolitical landscape with the Iran conflict officially entering its second month. Despite the modest gains in equities, global energy markets remain under intense pressure, with Brent crude surging toward $115 per barrel as a widening regional trajectory and disruptions in the Strait of Hormuz continue to stok...
Richard Drury Stock futures edged higher Monday morning as investors weighed a complex geopolitical landscape with the Iran conflict officially entering its second month. Despite the modest gains in equities, global energy markets remain under intense pressure, with Brent crude surging toward $115 per barrel as a widening regional trajectory and disruptions in the Strait of Hormuz continue to stoke stagflation fears. Here are some of Monday's biggest stock movers: Biggest stock gainers Bitdeer Technologies ( BTDR ) +3% – Shares rose after the company announced a partnership with DCI to develop its Tydal facility in Norway into an AI data center. The project is expected to deliver 180 MW of capacity and be completed by December 2026, supporting co-location services for Nvidia’s AI technology and positioning it as one of the largest AI data centers in the region. GlaxoSmithKline ( GSK ) +2% – Shares gained after the company received approval from China’s NMPA for Exdensur as an add-on treatment for severe eosinophilic asthma in patients aged 12 and older. The approval is based on Phase 3 SWIFT trials demonstrating a significant reduction in exacerbation rates versus placebo. The biologic, administered twice yearly, has shown a favorable safety profile and is already approved in multiple global markets. Rocket Lab USA ( RKLB ) +2% – Shares advanced after the company announced completion of its 85th launch and first dedicated mission for the European Space Agency. The Electron rocket successfully deployed two satellites for ESA’s Celeste navigation demonstration mission into low Earth orbit, underscoring Rocket Lab’s continued execution in supporting global government space programs. Biggest stock losers Origin Materials ( ORGN ) -17% - Shares plunged after the company reported weak Q4 results, with revenue falling to $3.0M from $9.2M a year ago, reflecting a planned reduction in its supply chain activation program. Operating expenses surged to $194.7M, driven primarily...
US ground troops have arrived in the Middle East but military options to open the strait risk strong retaliation from Iran Middle East crisis – live updates The arrival of American ground invasion forces in the Middle East over the weekend provides Donald Trump with the muscle for a perilous attempt to forcibly open the strait of Hormuz, Iran’s biggest pressure point in the war. Iran’s chokehold o...
US ground troops have arrived in the Middle East but military options to open the strait risk strong retaliation from Iran Middle East crisis – live updates The arrival of American ground invasion forces in the Middle East over the weekend provides Donald Trump with the muscle for a perilous attempt to forcibly open the strait of Hormuz, Iran’s biggest pressure point in the war. Iran’s chokehold on the strait , through which a fifth of the world’s oil trade normally passes, gives Tehran leverage that Trump understands, sending oil prices rocketing to more than $100 a barrel. The American president says he’s prepared to give diplomacy a chance , though bombing of Iran continues. Continue reading...
Abnormally strong jet stream triggers deluge in Middle East, while north Africa braces for 60-80mph gusts An unusual weather pattern unleashed severe thunderstorms across parts of the Middle East last week, battering countries including the United Arab Emirates and Saudi Arabia. The Arabian peninsula – typically dominated by arid desert climates – received up to 150mm of rain in just a few days. T...
Abnormally strong jet stream triggers deluge in Middle East, while north Africa braces for 60-80mph gusts An unusual weather pattern unleashed severe thunderstorms across parts of the Middle East last week, battering countries including the United Arab Emirates and Saudi Arabia. The Arabian peninsula – typically dominated by arid desert climates – received up to 150mm of rain in just a few days. The deluge was caused by an abnormally strong jet stream, which helped form a deep area of low pressure to develop north of Saudi Arabia. This, in turn, drew moist tropical air from the Indian Ocean and triggered intense storms. Continue reading...
Getty Images Written by Nick Ackerman, co-produced by Stanford Chemist The Liberty All-Star Equity Fund ( USA ) has seen significant pressure recently, with volatility in equities starting to rise. Over the last year, the fund has also seen a significant widening in its discount. As a closed-end fund, the market price can trade significantly differently from the actual underlying net asset value p...
Getty Images Written by Nick Ackerman, co-produced by Stanford Chemist The Liberty All-Star Equity Fund ( USA ) has seen significant pressure recently, with volatility in equities starting to rise. Over the last year, the fund has also seen a significant widening in its discount. As a closed-end fund, the market price can trade significantly differently from the actual underlying net asset value per share. This creates discounts/premiums that can be taken advantage of, often providing opportunities. Just a year ago, USA was still flirting with a premium to NAV. That wasn't all that uncommon for the fund since around 2021, when it began to fairly regularly trade at a premium or near parity with its NAV. Given this near 10% discount now opening up and greater overall pressure in equities, it makes USA an interesting choice once again. USA Basics 1-Year Z-score: -1.09 Discount/Premium: -9.65% Distribution Yield: 12.81% Expense Ratio: 0.91% Leverage: N/A Managed Assets: $2.06 billion Structure: Perpetual USA's investment objective is to "seek total investment return, comprised of long-term capital appreciation and current income. It seeks its investment objective through investment primarily in a diversified portfolio of equity securities." When constructing the portfolio, the fund is split between five different managers, each with a value- and growth-oriented tilt. While the fund is listed as 60% value, we'll see below that the portfolio's largest allocation is to technology. It also holds many of the Magnificent 7 names near the top. USA Managers (Liberty All-Star) Performance - Discount Gets Wide The last time we discussed USA specifically in a write-up was all the way back in mid-2023 . At that time, we were also discussing Gabelli Equity Trust ( GAB ). Both of these funds are pretty vanilla equity funds, which don't do anything too exciting. That made them a perfect pair to consider for a swap trade, which ended up seeing USA outperforming significantly at the tim...