Report published August 28, 2026
Morgan Stanley Weekly HF Highlights: Global Equity Selling Continues as US Software Buying Accelerates
Source and citation context
- Issuer
- Morgan Stanley
- Report date
- August 28, 2026
- Analysis as of
- August 27, 2026
Authors / editors: Bill Meany, Ayman Jagani, Ananya Karthik
Finvaulta summarizes Morgan Stanley's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
Hedge funds continued net selling global equities during the week ending August 27, 2026, driven by Multi-Strat and Macro accounts, even as US Software (SaaS) and Financials saw heavy net buying. US L/S net leverage reached 56%, while global HF performance trailed broader benchmarks as shorts detracted from long gains.
Key Takeaways
- 1.Hedge funds remained net sellers of global equities led by Multi-Strat and Macro accounts, while Equity L/S and Quant funds were modest net buyers.
- 2.In North America, buying concentrated heavily in Software (particularly SaaS at ~3.4z) and Financials (Alternatives and Regional Banks), while Materials, Discretionary, and Health Care saw net selling.
- 3.US L/S hedge fund net leverage rose to ~56% (78th percentile since 2010), while gross leverage stood flat at 210% (96th percentile).
Table of Contents
- This Week's Highlights (as of Thursday, August 27th)
- 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
Report data
Gross Leverage By Region — as of August 27, 2026.
| Metric | Estimate | Context |
|---|---|---|
| US Equity L/S Net Leverage | 56.0% | Net leverage inched higher, sitting at the 78th percentile since 2010 and ~2% below recent peak. |
| US Equity L/S Gross Leverage | 210.0% | Gross leverage at the 96th percentile since 2010 (table lists current US gross at 212%). |
| Global HF Average Performance | 0.16% | Global HF average performance (+1.7% MTD, +11.3% YTD). |
| Americas Equity L/S Performance | 0.1% | Americas L/S funds up ~10 bps vs. S&P 500 up +75 bps (+1.2% MTD vs. +3.3% S&P; +14.0% YTD vs. +13.8% S&P). |
| SaaS Net Buying Z-Score | 3.4 z-score | SaaS was the most net bought theme this week among the largest buying weeks in recent years. |
Reports in this series
Weekly HF Highlights is shown in chronological order through this edition, published on August 28, 2026.
- Aug 14HF Highlights 2026.08.14
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Authors / Editors
Reported Data Context
- US Equity L/S Net Leverage: 56.0 % (As of August 27, 2026) · Source: Morgan Stanley Prime Brokerage
- US Equity L/S Gross Leverage: 210.0 % (As of August 27, 2026) · Source: Morgan Stanley Prime Brokerage
- Global HF Average Performance: 0.16 % (Week ending August 27, 2026) · Source: Morgan Stanley Prime Brokerage
- Americas Equity L/S Performance: 0.1 % (Week ending August 27, 2026) · Source: Morgan Stanley Prime Brokerage
- SaaS Net Buying Z-Score: 3.4 z-score (Week ending August 27, 2026) · Source: Morgan Stanley Prime Brokerage