THE TELEGRAPH: Investors race to sell shares in North American and European companies amid market turmoil
Hedge funds scrambled to sell shares in North American and European companies last month in a sign that the world’s top money managers are preparing for a global recession.
Hedge funds piled out of stocks which might be vulnerable to an economic slump in January, according to data from Goldman Sachs, amid growing concerns about market turmoil and the prospect of a global downturn.
The funds instead focused on buying shares that are most likely to withstand any incoming recession, including by picking up stocks that generate reliable returns regardless of the state of the economy, such as healthcare and utilities companies.
Bruno Schneller, of asset manager Erlen Capital Management, said: “The rotation into more resilient sectors suggests hedge funds are positioning for a potential economic downturn.” » | Louis Goss, Business Reporter | Tuesday, February 4, 2025
