Hedge Funds Turn Against European Builders and Financials

March 24, 2025 - 17:42

LONDON - Global hedge funds have continued their trend of selling off European stocks for the second consecutive week, with a pronounced focus on the region's financial, materials, energy, and industrial sectors, according to recent data from Goldman Sachs for the week ending March 21. This shift reflects a broader sentiment among hedge funds, which have increasingly favored positions anticipating declines in European stocks over the past month.

In fact, for four out of the last five weeks, hedge funds have taken more short positions than long ones on European equities. The data reveals that nine out of eleven stock sectors experienced net sell-offs during the week, with particular emphasis on companies involved in building and construction materials, alongside firms within the financial sector. This ongoing trend indicates a cautious outlook among investors regarding the performance of these key sectors in the European market.