Goldman Sachs: Largest Active Hedge Fund De-Grossing Since Feb '09

Goldman Sachs Prime Services note that last week "represented the largest active hedge fund de-grossing since February 2009. Funds in their coverage sold long positions and covered shorts in every sector. Despite this active deleveraging hedge fund net and gross exposures on a mark-to-market basis both remain close to the highest levels on record, indicating ongoing risk of positioning-driven sell-offs. Regulatory actions, broker risk limits, or unexpected losses could all dampen the activity and market impact of retail traders, as Thursday's temporary reversal made clear. But otherwise, an abundance of US household cash should continue to fuel the trading boom."