NEW YORK, March 11 (Reuters) - Global hedge funds

accelerated the unwinding of stock positions on Monday, mainly

in the industrial sector, as they seek to reduce risk amid a

selloff in U.S. stocks, according to Goldman Sachs ( GS ) notes.

The bank said in a note that the de-risking had accelerated

from Friday, a trend it had previously compared with some

early-COVID pandemic unwinding.

Hedge funds cut their equities exposure on Monday as a steep

selloff drove the S&P 500 index to its biggest one-day

drop since December 18 and the Nasdaq Composite Index

plunged 4% on fears of a recession triggered by U.S. President

Donald Trump's tariffs on imports.

Goldman Sachs ( GS ) said portfolio managers ditched both long and

short bets on specific stocks on Monday, and fundamental

long/short hedge funds declined 1.9% on the day. Although it was

the worst day since June 13, 2022, the funds outperformed the

S&P, which was down 2.7%.

The unwinding on Friday and Monday represented the largest

two-day deleveraging in four years, with industrials leading the

pack. Goldman Sachs ( GS ) added that the exit from industrials was at

a record high.

Industrial companies have been out of favor among investors,

a separate Goldman Sachs ( GS ) note showed, pointing to weak earnings,

slowing orders and outlooks under pressure.