Goldman says hedge funds primed to gain from stock-picking boost

Hedge funds are positioned to benefit from an increasingly favorable environment for stock-pickers in the US, according to Goldman Sachs Group Inc. 
World headquarters of Goldman Sachs in New York. | Photo: Peter Morgan/AP/Ritzau Scanpix
World headquarters of Goldman Sachs in New York. | Photo: Peter Morgan/AP/Ritzau Scanpix
By Abhishek Vishnoi / Bloomberg

One measure of funds’ use of leverage to take positions is close to record highs, suggesting they are “well-timed to take advantage” of improving conditions for stock picking, strategists including Ben Snider wrote in a note dated Feb. 21, after analyzing the holdings of 758 hedge funds with USD 2.3trn of gross equity positions at the start of this year. “An increasingly micro-driven market bodes well for hedge fund returns.”

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