Goldman Says Hedge Funds Use Rally in US Stocks to Offload Risk

Hedge funds are using the US equity rally to reduce risk, according to traders on Goldman Sachs Group Inc.’s prime brokerage desk.

As a rapid rebound in the S&P 500 Index drove the benchmark to a record high last week, hedge funds were cutting the total size of their long and short positions in equities by the most since September last year, analysis from the Goldman team led by Vincent Lin shows.