Hedge Funds Net Sell US Equities at Fastest Pace Since March 25

Macro Charts posted on X, hedge funds have turned defensive, net selling US equities MTD at the fastest pace since March 25. Gross leverage for US long/short funds fell by 8.6 points in February. This marks one of the sharpest monthly declines since 2016, reversing January's risk-taking increase. Despite rapid leverage reduction, US long/short gross exposure remains in the 96th percentile over a three-year period. Positioning is not yet at a level to sustain an equity market tailwind, according to Vincent Lin from GS Prime trading desk.