Hedge funds bet against builders, financial firms and energy in Europe, says Goldman Sachs

Nell Mackenzie

Mon, Mar 24, 2025, 5:10 AM 2 min read

By Nell Mackenzie

LONDON (Reuters) -Global hedge funds sold European stocks for the 2nd consecutive week successful a enactment with a absorption connected the region's financial, materials, vigor and concern companies, Goldman Sachs information for the week ending March 21 showed.

Hedge funds arsenic a radical person had much positions that European stocks would autumn alternatively than emergence successful 4 of the past 5 weeks, the enactment said. A abbreviated stake is simply a wager that the worth of an plus volition decline.

Germany, Italy, the Netherlands, Denmark, and UK were the astir nett sold markets past week, the bank's premier brokerage said successful a backstage enactment to clients and seen by Reuters.

The abbreviated wagers were driven chiefly by picking retired azygous stocks alternatively than positions tracking broader banal indices.

Nine of 11 banal sectors were nett sold connected the week, led by gathering and operation materials-focused companies, arsenic good arsenic firms successful the financials sector, Goldman Sachs said.

Crowded European abbreviated positions successful February included plus manager Schroders arsenic good arsenic location betterment company, Kingfisher, information and tech steadfast Hazeltree said successful a abstracted study published connected March 19.

Hazeltree's study is based connected information globally from astir 700 plus absorption funds, it says.

Hedge funds person added to those bets against Schroders and Kingfisher this month, according to UK regulatory disclosures.

Funds which person stake against Kingfisher successful March see AKO Capital, Man Group, Kintbury Capital and Marshall Wace, the regulatory disclosures from the UK's Financial Conduct Authority show.

Kintbury Capital besides opened a abbreviated stake against Schroders successful March, according to the disclosures.

Energy steadfast Petrofac was listed by FCA disclosures arsenic the UK-listed institution with the largest abbreviated positions arsenic a proportionality of the company's outstanding stock. These were held by Helikon Investments and concern manager TFG Asset Management.

Kingfisher and Petrofac declined to comment, portion Schroders did not respond to a petition for comment.

Among the hedge funds, Man Group and Marshall Wace declined to comment. AKO Capital, Helikon Investments, TFG Asset Management and Kintbury Capital did not instantly respond to a petition for comment.

(Reporting by Nell Mackenzie; Editing by Tommy Reggiori and Chizu Nomiyama )