Weekly HF Highlights

Hedge fund performance struggled in early February as a major Momentum factor drawdown (-7.6%) triggered the largest weekly global equity selling and US de-grossing in months. US L/S net leverage dropped 5% to 51%, while gross leverage remains at historical highs.

Key Takeaways

• 1.The Momentum factor experienced its largest drawdown in three years (-7.6%), leading to significant performance challenges for US L/S funds.
• 2.US Long/Short net leverage fell by 5% week-over-week to 51%, dropping below 12-month medians.
• 3.This week marked the largest net selling of global equities by hedge funds since Liberation Day, led by North American reductions.

Table of Contents

• This Week's Highlights (as of Thursday, February 5th)
• Key Stats as of Feb 5, 2026
• 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
• Important Information and Qualifications

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial