Goldman Traders See ‘Fast-Money’ Funds Turning Into Stock Buyers

Systematic investors are poised to flip back into equity-buying mode after slashing their exposure to multi-year lows during the recent market selloff, according to Goldman Sachs Group Inc.’s trading desk.

The so-called fast-money cohort — which includes commodity trading advisers and volatility-targeting strategies — dumped roughly $240 billion of global stocks over the past month as markets tumbled, Goldman said in a Monday note to clients. That wave of selling appears to be drying up: The bank’s traders estimate the group could be net buyers of around $55 billion over the next month, including roughly $20 billion in US equities.