Hedge funds made significant adjustments to their positions in Asian markets on Monday, following a major sell-off in the US and Europe last Friday, according to a report by Goldman Sachs.
The investment bank noted that Monday’s trading activity saw the steepest decline in hedge fund positions in Asia in four years. While the note did not specify the asset classes affected, it highlighted that developed markets, particularly Japan, accounted for around 75% of the reductions. Hedge funds in Japan actively closed out short positions while also selling off long positions.
In emerging Asian markets, China saw the largest cuts, mainly from hedge funds reducing their bullish bets. This wave of repositioning came after hedge fund clients of Goldman Sachs made their biggest two-day reduction in global market bets in four years.
Despite the sharp pullback, overall inflows into key Asian markets remain positive for the year, considering both long and short positions. Last month, hedge funds had built up record-high exposure in the region.
Performance-wise, Asia-focused long-short hedge fund managers recorded a 0.9% gain in March so far and are up 4% for the year. China-focused funds led the region, with an average increase of 1.4% this month and 6.9% in 2025.
In contrast, global long-short hedge fund managers have faced losses, with a 3% decline in March, deepening the downturn that began in mid-February. Their year-to-date losses stand at approximately 1%, according to the Goldman Sachs report.
With inputs from Bloomberg
Bringing you the latest updates on finance, economies, stocks, bonds, and more. Stay informed with timely insights.
[…] Hedge Funds Unwind Bets in Asia After Heavy Selling in US and EuropeHedge Funds Turn Bearish on U.S. Stocks Amid Market Concerns, Says Goldman SachsAsian Economies Brace for Impact as Trump’s New Tariffs Shake Trade Dynamicsbigbreakingwire […]