Goldman Sachs: Hedge Funds Are Increasing Purchases More Like Restructuring Than Taking on Risk

According to data from Goldman Sachs' prime brokerage division, the net purchases of stocks by hedge funds reached the highest level in six months for the week ending August 13. Goldman Sachs' team noted that this marks the third consecutive week of net buying, with the scale exceeding the average fund flows over the past year by 1.6 standard deviations. Overall, the significant buying in the week did not increase the overall risk exposure of portfolios above early week levels. The main change has been in the composition of holdings, rather than the scale of risk.