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Morgan Stanley

Weekly HF Highlights

Finvaulta tracks 6 editions of Weekly HF Highlights from Morgan Stanley, published between August 14, 2026 and October 2, 2026. Each edition is summarized on its own page.

Latest edition · October 2, 2026

HF Highlights 2026.10.01

Hedge funds remained hesitant to add risk during the week ending October 1, 2026, holding US L/S net leverage flat at 52% while finishing as modest net sellers of global equities. While Infrastructure Software and Cybersecurity saw inflows, managers trimmed exposure to Energy, Health Care, and AI verticals.

During the week ending October 1, 2026, hedge funds maintained a cautious stance amid macro and geopolitical overhangs, leaving US L/S gross leverage at 207% and net leverage flat at 52%. Selling was observed across North America, Europe, and APAC, with US Energy net sold for 13 of the prior 15 sessions. In TMT, managers rotated into Infrastructure Software and Cybersecurity while taking profits or reducing exposure to AI verticals such as Agentic AI and AI Tech Beneficiaries. European equity net exposures stayed near historic lows as EU managers favored US equities, and performance across equity L/S funds experienced a pullback of roughly 1.5% for the month of September.

Read the latest edition in full

Key takeaways from the latest edition

  • 1.Hedge funds were reluctant to deploy risk amidst macro and geopolitical headwinds, keeping US L/S net leverage relatively flat WoW at 52% and gross leverage at 207% (near 12-month troughs).
  • 2.Global equities saw net selling across North America, Europe, and APAC; US Energy was net sold in 13 of the past 15 sessions, driven by Crude Levered equities and E&Ps.
  • 3.In TMT, buyers favored Infrastructure Software and Cybersecurity, while key AI verticals such as Agentic AI and AI Tech Beneficiaries were net sold.

What this series covers

  • This Week's Highlights
  • Weekly Flows: Global Summary
  • Weekly Flows: Sector Flows Summary
  • Regional Leverage: US, Europe, and Asia
  • Performance Highlights: MTD & YTD HF Performance Estimates
  • Crowding Performance: Top 50 Crowded Longs vs. Shorts
  • N. America Daily Crowding Perf: Top 50 Crowded Longs vs. Shorts

Edition archive

Series at a glance

Editions tracked
6
First edition
August 14, 2026
Latest edition
October 2, 2026
All Morgan Stanley research

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