By Nell Mackenzie
LONDON (Reuters) – Global hedge funds sold U.S. shares of electricity and water companies at the fastest pace in two months in the week to Friday, while they sold U.S. commodity stocks such as chemicals, metals and mining, as well as paper and forestry stocks, Goldman Sachs said. .
U.S. utilities are now among the top-selling U.S. stock sectors in November, according to a note from Goldman Sachs prime brokerage sent to investors on Friday and seen by Reuters on Monday.
The Dow Jones Utility Index, which tracks a collection of U.S. utilities, rose just over 3% last week and is up more than 20% so far in 2024.
Most utilities, including electricity and water, were sold, with the exception of gas companies, according to the note, which tracks weekly hedge fund sales.
Materials were the most net-bought U.S. stock sector on Goldman Sachs’ trading desk last week.
The purchases spanned the entire equity sector, followed first by chemicals, then metals and mining, as well as paper and forest products, the note said.
An S&P index tracking U.S. commodity stocks rose 1% in the week ending Friday and is up more than 9% so far in 2024.
Hedge funds have bought commodity stocks in three of the past four weeks, and the sector is among the most net-bought sectors in the United States, according to Goldman Sachs’ prime brokerage desk.
(Reporting by Nell Mackenzie; Editing by Dhara Ranasinghe and Emelia Sithole-Matarise)
