Hedge Funds Bail From Global Stocks at Fastest Pace in 13 Years

Fast-money investors are rushing to unwind their global equity exposure amid diminishing hopes for a swift resolution of the war in the Middle East.

Hedge funds sold global stocks at the fastest pace in 13 years in March, according to data compiled by Goldman Sachs Group Inc.’s prime brokerage unit. The pace of selling was the second-largest since the bank started collecting the data in 2011.

The move was largely driven by a pickup in short sales, underscoring concern that the stock market is prone to more weakness amid ongoing fighting in Iran. The MSCI All-Country World Index fell 7.4% ...