Hedge funds at the fastest pace in more than five years added bearish bets in Japanese stocks in a week between Aug 2 and Aug 8, according to Goldman Sachs in a note Friday, when the Nikkei dropped by the largest amount for the index since Black Monday in 1987 on Aug 5.

Equity long/short hedge funds increased 1.7 shorts, or bets that stocks will fall, for each long position sold in the week between Aug 2 and Aug 8, the bank said.

Japanese stocks collapsed on Monday as a sell-off triggered by economic concerns and the unwinding of a popular yen trade financing investment in stocks reverberated across markets worldwide.

During the five-trading day week that ended on Aug 8, portfolio managers sold more Japanese stocks than they added to their short positions in four trading sessions, with only Tuesday being an exception.

According to Goldman Sachs, hedge funds' net exposure to Japanese equities stood at 4.8 per cent on Thursday, down from 5.6 per cent a week earlier.

It was reported that hedge funds, for a fourth week running, bet against worldwide equities, adding more short positions as mayhem spread across the shores.

Goldman Sachs, one of the largest prime brokers in the world, tracks the flows of its hedge fund clients to report on trends.

Long/short hedge funds focusing on global equity fundamentals were down 1.34 per cent for the week amid the market rout, while systematic long/short funds posted gains of 0.77 per cent.

Hedge funds at the fastest pace in more than five years added bearish bets in Japanese stocks in a week between Aug 2 and Aug 8, according to Goldman Sachs in a note Friday, when the Nikkei dropped by the largest amount for the index since Black Monday in 1987 on Aug 5.

Hedge funds at the fastest pace in more than five years added bearish bets in Japanese stocks in a week between Aug 2 and Aug 8, according to Goldman Sachs in a note Friday, when the Nikkei dropped by the largest amount for the index since Black Monday in 1987 on Aug 5. Equity long/short hedge funds increased 1.7 shorts, or bets that stocks will fall, for each long position sold in the week between Aug 2 and Aug 8, the bank said. Japanese stocks collapsed on Monday as a sell-off triggered by economic concerns and the unwinding of a popular yen trade financing investment in stocks reverberated across markets worldwide. During the five-trading day week that ended on Aug 8, portfolio managers sold more Japanese stocks than they added to their short positions in four trading sessions, with only Tuesday being an exception. According to Goldman Sachs, hedge funds' net exposure to Japanese equities stood at 4.8 per cent on Thursday, down from 5.6 per cent a week earlier. It was reported that hedge funds, for a fourth week running, bet against worldwide equities, adding more short positions as mayhem spread across the shores. Goldman Sachs, one of the largest prime brokers in the world, tracks the flows of its hedge fund clients to report on trends. Long/short hedge funds focusing on global equity fundamentals were down 1.34 per cent for the week amid the market rout, while systematic long/short funds posted gains of 0.77 per cent.

Bank reports hedge funds ramping up bearish bets on Japanese stocks

Japanese stocks suffered their biggest daily percentage drop in a month today hit by a stronger Yen, while global concerns such as the upcoming Brexit vote and worries about Japan&#39;s fiscal policies sapped risk appetite. 
 
The Nikkei share average fell 2.3 per cent to 16,562.55, the biggest daily drop since May 2. 
 
The already pressured dollar sank further against the yen after Bank of Japan board member Takehiro Sato reiterated his view that the BOJ should consider its 2 per cent inflation target as a long-term goal with room for flexibility, rather than one with a rigid deadline. 
 
That meant the BOJ should modify its current massive asset buying programme, which was intended to be a short-term move aimed at shocking the public out of its deflationary mindset. 
 
The broader Topix declined 2.2 per cent to 1,331.81 and the JPX-Nikkei Index 400 fell 2.3 per cent to 12,004.95.

The Nikkei share average fell 2.3 per cent to 16,562.55, the biggest daily drop since May 2. The upcoming Brexit vote and worries about Japan's fiscal policies play their part

Japanese stocks suffered their biggest daily percentage drop in a month today hit by a stronger Yen, while global concerns such as the upcoming Brexit vote and worries about Japan's fiscal policies sapped risk appetite. The Nikkei share average fell 2.3 per cent to 16,562.55, the biggest daily drop since May 2. The already pressured dollar sank further against the yen after Bank of Japan board member Takehiro Sato reiterated his view that the BOJ should consider its 2 per cent inflation target as a long-term goal with room for flexibility, rather than one with a rigid deadline. That meant the BOJ should modify its current massive asset buying programme, which was intended to be a short-term move aimed at shocking the public out of its deflationary mindset. The broader Topix declined 2.2 per cent to 1,331.81 and the JPX-Nikkei Index 400 fell 2.3 per cent to 12,004.95.

Nikkei hit by strong Yen, suffers biggest drop in a month

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Bank reports hedge funds ramping up bearish bets on Japanese stocks

Nikkei hit by strong Yen, suffers biggest drop in a month