March Sees Hedge Funds Fiercely Shorting Global Equities
Hedge funds shorted global equities at the fastest pace in a decade in March, with short selling outpacing buys 7.6 to 1.0, marking the fourth consecutive month of selling. 76% of shorting activity was concentrated in index and ETF products, with U.S.-listed ETFs seeing a 17.2% increase in short interest. Industrials, financials, and technology were the sectors with the highest global selling, while energy, healthcare, and consumer staples saw net buying
Hedge funds shorted global equities at the fastest pace in a decade in March, with short selling outpacing buys 7.6 to 1.0.
This marks the fourth consecutive month of selling, matching the streak from February to May 2025.
76% of shorting activity was concentrated in index and ETF products, with U.S.-listed ETFs seeing a +17.2% increase in short interest, primarily large-cap ETFs.
Consequently, single stock selling accounted for just over 24% of total volume, with industrials, financials, and technology being the sectors with the highest global selling.
Energy, healthcare, and consumer staples were the only sectors to see net buying.
From another perspective, the possibility of short squeezes is also increasing.
