Systematic funds buy stocks at record pace, adding $86 billion: Goldman

Goldman Sachs says systematic (trend-following) hedge funds have aggressively accumulated equities, adding about $86 billion of exposure over the past week (the last five trading sessions). The buying pace ranks among the top five in history and has helped support stocks as they hover near record highs and head for a third consecutive weekly gain. Goldman’s models suggest CTAs could continue buying and potentially add another ~$70 billion over the next five sessions, echoing aggressive accumulation seen in Aug 2024, Nov 2023 and Sep 2019. The flows imply continued upside support for the S&P 500 and broader global equities, though geopolitical developments (Middle East) remain a near-term risk.