Hedge funds dumped global equities at the fastest pace in 13 years as market risks intensified.

Goldman Sachs Group Inc. reported that hedge funds offloaded global equities in March at the fastest pace in 13 years, marking the second-largest wave of selling since its prime brokerage began tracking the data in 2011.

The selloff was largely driven by a surge in short positions, as investors bet on further market weakness amid ongoing conflict in Iran. Global equities reflected this pressure, with the MSCI All-Country World Index dropping 7.4%—its worst monthly performance since 2022—while the S&P 500 Index fell 5.1% over the same period.

Fast-moving hedge funds increasingly used exchange-traded funds (ETFs) to express bearish views, with short positions in large-cap equity ETFs driving a 17% rise in overall short exposure across U.S.-listed ETFs.

In the U.S., selling was widespread, hitting eight out of 11 sectors, with the heaviest outflows seen in economically sensitive areas such as industrials, materials, and financials.

At the same time, fund managers rotated into more defensive assets, buying consumer staples stocks at the fastest pace since July 2025—driven entirely by new long positions.

Meanwhile, hedge funds turned net buyers of technology, media, and telecom stocks for the first time in four months, though this was mainly due to short covering rather than fresh bullish bets.

Sources: Vlad Schepkov