According to a report obtained by the Wisdom Financial APP, a report from Goldman Sachs shows that as investors react to Trump winning the US presidential election, hedge funds last week grabbed bank stocks at the fastest pace in three years, while shorting renewable electrical utilities.

According to a report released last Friday, financial stocks such as banks and trading companies were the most popular and net purchased sector in Goldman Sachs' institutional brokerage department last week.

Although the report did not specifically mention which region's banks received the most attention, another report issued by Goldman Sachs' institutional brokerage department on the same day stated that Bank of America would benefit.

The second report states that many believe with Trump's new term, regulatory scrutiny will relax, and financial stocks are expected to receive a boost.

The report further adds that financial companies are also expected to benefit from anticipated tax reform.

Goldman Sachs' second report states, 'There is further room for US financial sector stocks to rise.' and adds that hedge funds' positions in these stocks are still at historically low levels.

On November 6th, after the news of Trump winning the election, Bank of America's stock rose by 11.1% compared to the previous day's closing.

The first report stated that banks and companies providing consumer finance, capital markets, and financial services ranked top in long positions.

Call bets are mainly concentrated in the US stock market but also include stocks from emerging markets in Asia. In Europe, hedge funds have exited short positions and increased long positions.

Goldman Sachs' first report stated that utility stocks saw net selling for the first time in four weeks, mainly driven by short selling.

The bank stated that independent electrical utilities and renewable energy producers were most sold off, with hedge funds having a long-short ratio of 1:2 for US utility companies.

Editor/ping