HEDGE FLOW Hedge funds squeezed from short bets amid surging meme stocks, Goldman Sachs says

LONDON, May 17 (Reuters) – Hedge funds ditched bearish stock bets early this week at some of the highest rates in three years as U.S. meme stocks rallied sharply, a Goldman note seen by Reuters on Friday showed.

The note, published on Wednesday just before the rally faded, said hedge funds dropped positions on the most actively shorted stocks tracked by a Goldman Sachs index. These funds also piled into long bets just as retail investor favourites, GameStop (GME.N), opens new tab and AMC (AMC.N), opens new tab soared on the return of social media account “Roaring Kitty” — a central player in the 2021 meme-stock rally.