Hedge funds de-risk in July to close to record levels

<p>Goldman Sachs Prime Brokerage report for July shows:</p><ul><li>Hedge funds have been de-risking in July at levels that are close to record levels for the past decade.</li><li>The de-risking by hedge funds in July has been mainly attributed to short covering.</li><li>Long/short hedge funds experienced nine consecutive days of negative returns before July 28, which is the longest streak since January 2017.</li><li>Long/short hedge funds are expected to face the worst monthly alpha drawdown in July since May 2022.</li><li>Goldman Sachs indicates "signs of capitulation are starting to emerge" in their recent prime brokerage report.</li></ul><p>Not great news for the hedge funds as they get caught in probably some of the high flyers. </p><p>A summary of the US stocks are showing modestly positive levels. The major indices have been trading above and below unchanged today.</p><ul><li>Dow Industrial Average is up 7.75 points or 0.02% at 35466.88</li><li>S&amp;P index is up 2.28 points or 0.05% of 4584.67</li><li>NASDAQ index is up 19.64 points or 0.14% at 14336.20</li></ul><p>Adobe is on fire with a $20 gain up 3.79% at $548.90. Goldman Sachs increased their price target by some $150 to $660</p><p>Apple who will report earnings on Thursday is trading up $0.37 or 0.19% at $196.15. Amazon will also report on Thursday and is trading at $1.26 or 0.96% at $133.37.</p><p>Meta – whose shares rose by 10.61% last week after better earnings is trading down $4.47 or -1.3% today at $321. The high price last week reached $326.20.</p><p>Netflix shares are up 2.52%</p>

This article was written by Greg Michalowski at www.forexlive.com.