(Bloomberg) — Hedge funds are turning increasingly defensive as uncertainty around geopolitics and the path of interest rates, as well as the stock market’s April swoon, has investing pros spooked.
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Positioning data shows that hedge fund added defensive equity positions to their portfolio in April at the fastest pace in eight months, while still being net sellers of global stocks, according to figures compiled by Goldman Sachs Group Inc.’s prime brokerage desk. That snaps a four-month streak of buying. Health care saw the biggest inflows, while consumer discretionary stocks had the largest net selling in seven months, according Goldman’s data.
“It makes sense that hedge funds would be more defensive,” said Keith Lerner, co-chief investment officer at Truist Wealth. “You had a big first quarter, and now we’re seeing more choppiness and volatility around interest rates and inflation.”
The move came…
