LONDON, Oct 20 (Reuters) - Hedge funds last week sold

the largest amount of stocks in over six months including energy

shares, said a client note by Goldman Sachs ( GS ) while a separate

note by JPMorgan ( JPM ) highlighted a sell-off in banks.

Speculators sold global banks and financial services

companies in the U.S. particularly, leaving their positioning in

the sector neutral, showed a client note by JPMorgan's ( JPM ) prime

brokerage seen by Reuters on Monday.

This came against a backdrop of selling in global stocks

late last week, with the bankruptcies of First Brands and

Tricolor putting a focus on the risk controls of banks and the

opaque credit market, where complex loans and new facilities

have made it harder to gauge participants' exposure.

Still , the S&P 500 index ended last week 1.7%

higher as quarterly results from regional banks eased banking

sector concerns and investors took comfort from U.S. President

Donald Trump's latest remarks on trade relations with China.

Retail and mutual funds in the first quarter of 2025 held

over half of the U.S. stock market volume, whereas hedge funds

made up less than 10%, a UBS client note in August showed.

Hedge funds last week sold equities in every major trading

region apart from Europe by the largest amount in six months,

said a prime brokerage note from Goldman Sachs ( GS ), seen by

Reuters on Monday.

Hedge funds dumped losing long positions and added short

bets, the bank said.

A long position bets an asset value will rise, whereas a

short wager expects it to fall.

The Goldman note added that energy stocks were sold in the

largest clip in four months.

Crude oil fell below $60 last week following a report

from the International Energy Agency, which continues to

forecast a significant supply glut in the oil market.

Hedge fund selling concentrated in companies related to the

oil, gas and consumable fuels industries, said Goldman.

However, uncertainty over where that oil supply currently is

in the world and disputing supply projections from other oil

forecasting agents including OPEC, have thrown the projection

into doubt.

Hedge funds' energy-related share exposure tracked by

Goldman Sachs' ( GS ) prime brokerage is now the lowest in three years,

Goldman said.

Overall performance for stock pickers declined 0.73% between

October 10 and 16. Those with systematic strategies saw returns

rise 0.22% over the same time frame, Goldman's note added.