GS Armbrust What Matters Today Hedge Funds Very Long Financials Energy 21 Aug 2026

GS Armbrust - What Matters Today: Hedge Funds are Very Long Financials and Energy, Rich Privo's Views on Risk, HFs continue to Sell Korea 21 Aug 2026 Armbrust · Goldman Sachs · Managing Director, FICC & Equities Fri 21 Aug 2026, 8:39am ET

1) Hedge Funds are Very Long Financials and Energy

PERFORMANCE: US equity long/short hedge funds have returned +10% YTD through August 19th. Returns were strong in Q2, with exceptional strength in June followed by weakness in July. Performance has remained volatile so far in August.

LEVERAGE AND SHORT INTEREST: Hedge funds have cut gross and net leverage sharply from Q2 record highs, but exposures remain elevated relative to longer histories. The ETF share of hedge fund long portfolios has climbed to 5.6%, the highest level since the GFC. Funds carry a near-record net short position in Nasdaq-100 futures, and short interest in the median S&P 500 stock sits near the highest level in over 15 years.