After the fastest short covering in six years forced a painful unwind, hedge funds are cautiously rebuilding bearish bets with a more surgical approach. In March 2026, Goldman Sachs prime brokerage data showed short sales outpaced long buys by a ratio of 7.6 to 1 globally, the fastest pace of net selling in 13 years, with 76% of positioning concentrated in major stock indexes and ETFs. On April 8, the announcement of a US-Iran ceasefire triggered a sharp market rally, forcing funds to cover their positions urgently. Multi-strategy hedge funds like Citadel, Schonfeld and ExodusPoint navigated the turbulence particularly well, delivering positive returns through nimble repositioning.
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