By Nell Mackenzie
LONDON (Reuters) -Hedge funds bought global equities last week at the quickest pace since November 2024, Goldman Sachs said in a note, just as stock markets ended the month with their most positive May performance in decades.
The S&P 500 advanced just over 6% in May, its biggest monthly rise since November 2023 and its best gains for the month of May since 1990. The Nasdaq rallied about 9.6%, which was also its biggest monthly gain since November 2023 and its best May performance since 1997.
Hedge funds ended the week bullish in every global region, led by North America and Europe, the Goldman Sachs report said.
Technology companies attracted the highest interest, with hedge funds accumulating the largest weekly number of net long positions in the sector in over five years. Buying centered on firms integral to the artificial intelligence industry, including semiconductor manufacturers, technology hardware producers and electrical equipment companies, the report said.
North American tech companies were favoured by hedge fund trades, followed by European counterparts, Goldman Sachs said.
The pan European stock index returned more than 5% in May. Hedge funds bought European stocks for the third straight week and at the fastest pace in three months, the Goldman note said.
Companies in Spain, France, Finland, Germany, Sweden and Denmark were the most net bought markets this week, while Ireland, the Netherlands and Switzerland were the most net sold, said the Goldman report.
European stock sectors bought by global hedge funds last week included consumer discretionary, financial, health care and communications companies, the data showed.
Hedge funds mostly bought single stocks but also made some long trades in stock indexes too, said Goldman Sachs.
A long position expects an asset price to rise.
(Reporting by Nell Mackenzie; Editing by Dhara Ranasinghe and Jacqueline Wong)
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