Hedge funds recorded their second-largest weekly retreat from global equities in the 12 months through the week ended Aug. 20, according to Morgan Stanley, while Goldman Sachs recorded the largest weekly sale of U.S. equities since the week of Liberation Day in April 2025. The reversal ended three consecutive weeks of U.S. equity purchases and coincided with a 1.4% decline in the S&P 500. Selling was concentrated outside the United States, particularly in Asia-Pacific, where funds cut exposure to Japan, China, South Korea and Taiwan and sold semiconductors, electronic equipment and hardware. In the United States, nine of 11 sectors saw net selling, led by information technology, while utilities experienced one of their largest five-year sell-offs as long-term Treasury yields rose. Single stocks represented about 53% of total sales, and hedge funds reduced net leverage as they unwound bullish positions.