Hedge funds bought global equities last week at the fastest pace since November 2024, according to a note from Goldman Sachs, as financial markets recorded one of their strongest Mays in decades.
The S&P 500 gained just over 6% in May, its biggest monthly advance since November 2023 and best May performance since 1990. The Nasdaq soared 9.6%, marking its strongest May since 1997.
Goldman Sachs said hedge funds ended the week with bullish positions across every global region, with North America and Europe seeing the highest levels of activity.
Technology shares were the standout sector. Hedge funds took on the largest net long positions in tech stocks in over five years, with investments focused on companies linked to the artificial intelligence boom—notably semiconductors, hardware, and electrical equipment producers.
While North American tech firms led the charge, European technology companies also drew considerable attention, Goldman said.
The pan-European STOXX index climbed more than 5% last month. European equity purchases by hedge funds accelerated for a third consecutive week, marking the fastest pace in three months.
Country Focus and Sector Picks
The most net bought markets were Spain, France, Finland, Germany, Sweden, and Denmark, while hedge funds reduced positions in Ireland, the Netherlands, and Switzerland.
Beyond tech, consumer discretionary, financials, healthcare, and communications sectors attracted increased buying.
Most activity was concentrated in individual stocks, though hedge funds also added long positions—bets that asset prices will rise—in broader stock indices, the report said.
With optimism returning to markets and AI-driven demand lifting sentiment, investors appear increasingly confident heading into the second half of the year.
