Jun 29, 03:02 AM

Goldman Hedge Fund Chief Advises Risk Cuts Amid Rising Drawdown Probability, S&P 500 Hedging Costs at 5-Year Low

Hedge funds' exposure to cyclical versus defensive sectors is at an all-time low, according to BofA Savita. Goldman Sachs' hedge fund chief, Tony Pasquariello, has advised cutting portfolio risk, warning that while it is a bull market, the probability of a drawdown is increasing. He noted that the risk of a selloff rises as the rally narrows. Additionally, the cost to hedge portfolios against an S&P 500 decline has fallen to its lowest level in five years, indicating potential complacency and over-crowdedness in the market. Hedging costs for US and European stocks are also at all-time lows.

#BofA Savita #Goldman Sachs #Tony Pasquariello #US #European

Written with ChatGPT (GPT-4o).

Sources

Tracy Shuchart (𝒞𝒽𝒾 )@chigrl
2 years ago
Goldman’s Hedge Funds Head Says It’s Time to Cut Portfolio Risk (Bloomberg) https://t.co/Q0LbCOppiT
ACEMAXX ANALYTICS@acemaxx
2 years ago
S&P 500 #hedges have fallen to their cheapest level in 5y – An indication of the potential complacency and potential over-crowdedness of markets, chart @GoldmanSachs https://t.co/BhFd27KAJH
ACEMAXX ANALYTICS@acemaxx
2 years ago
#hedging cost for US and European stocks at all-time lows, chart @ReutersMikeD https://t.co/5f83aOQVWA https://t.co/xgF4YTTwFM

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Goldman Hedge Fund Chief Advises Risk Cuts Amid Rising Drawdown Probability, S&P 500 Hedging Costs at 5-Year Low

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