Hedge Funds’ Short Bets Near Five-Year High, Goldman Flags Squeeze Risk
Goldman’s prime-brokerage data show unusually crowded short exposure and depressed net leverage, leaving portfolios vulnerable if equities rebound sharply.
Hedge Funds’ Short Bets Near Five-Year High, Goldman Flags Squeeze Risk
Goldman data show crowded bearish positioning
Short sales exceeded long purchases by roughly five to one in Goldman Sachs’ prime-brokerage book. Short leverage ranked in the 99th percentile of the last five years, while fundamental long/short funds’ net leverage was near a three-year low. The setup could amplify a rally if bearish positions are forced to cover, but the data do not predict that a squeeze will happen.
Sources: Bloomberg, 22 Oct 2026; Goldman Sachs, 9 Oct 2026.
Image: Maxim Hopman / Unsplash. Illustrative stock-market chart; not the positions or returns of Goldman Sachs or any named hedge fund. Image usage terms.
Sources
What's Your Reaction?
Like
0
Dislike
0
Love
0
Funny
0
Angry
0
Sad
0
Wow
0
jajoy39
I’m Nahid Hasan Joy, a technology writer, web developer, and digital enthusiast with a strong interest in the ever-changing world of technology.
