Data from Goldman Sachs' prime brokerage business shows that global macro hedge funds have not significantly reduced their equity holdings during the recent decline in the S&P 500. Given the large index exposure of these funds, concentrated adjustments to their positions could exacerbate stock market volatility.
Goldman Sachs models estimate that S&P 500 futures face approximately $28 billion in potential selling pressure in the coming week, and $45 billion in potential selling pressure over the next month, driven by systematic trading strategies. Furthermore, SpotGamma data shows that the S&P 500 index has negative gamma exposure in the 7000-7550 point range, and hedging activities by options traders could amplify short-term price volatility. (Source: Bloomberg)
