Hedge funds to sell up to $30 billion of stocks soon, potentially exacerbating the recent downward move in shares

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via reuters:

LONDON, Oct 2 (Reuters) – Hedge funds using computers to trade equities are expecting to start selling to the tune of $20 billion to $30 billion in the next two weeks given retreating stock markets, a UBS (UBSG.S) note seen by Reuters shows.

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Hedge funds using algorithms to follow market trends have turned neutral from bullish on stocks, the UBS note said.

The bank anticipates as much as $30 billion of outflows will soon hit markets, potentially exacerbating the downward move in shares, as these hedge funds start selling stock to follow the recent negative performance.

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This will be the first time these hedge funds will be net short equity markets since November 2022, the bank said.

 


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