US Equities Weekly Rundown

US equities finished lower as significant de-grossing occurred in hedge fund portfolios, led by a record unwind in Consumer Discretionary and rotation into 'AI-immune' defensives. Goldman Sachs launched a new software pair trade to capture the divergence between physical-world software and AI-replaceable digital workflows.

Key Takeaways

• 1.Hedge Funds show signs of de-grossing with US L/S Gross leverage falling -6.4 pts MTD, though it remains in the 98th percentile over 5 years.
• 2.Massive risk unwinds in Consumer Discretionary marked the largest dollar de-grossing in the sector in over 5 years.
• 3.A 'physical > digital' rotation is accelerating, with investors favoring Staples, Utilities, and Industrials over Technology and Software.

Table of Contents

• Portfolio Manager's Summary
• What We Are Reading and Listening to This Week
• Prime Services
• US Shares Sales Trading
• Futures Sales Trading and Strategies
• Derivatives Sales Trading
• Thematic Baskets and Macro Observations
• Sector Specialists Highlights
• TMT
• Consumer
• Financials & Real Estate
• Industrials & Materials
• Energy & Utilities

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