Goldman Sachs' bulk brokerage business department's data shows that last week hedge funds' net leverage ratio in the US stock market fell by the largest amount so far this year, indicating that hedge funds are becoming more and more cautious in risk clearing and positioning. Hedge funds have net sold US stocks for three consecutive weeks, almost entirely driven by the sale of long positions. Individual stocks were net sold for the second consecutive week, with the largest nominal net sales since March 2022. This exceeds the short covering of macro products such as indexes and ETFs. In terms of industries, 8 out of 11 industries in the United States were net sold, led by information technology, basic consumer goods, real estate, and finance industries. The industrial, raw material and energy sectors saw net buying. Hedge funds have net sold raw materials for six out of the past seven weeks, but now they have reversed their strategy and are net buying the sector at the fastest pace in five months.