By Nell Mackenzie

LONDON (Reuters) -Stock-picking hedge funds now have the biggest short positions since 2023 on UK-based stocks exposed to the domestic economy, according to a Goldman Sachs client note.

The group bulked up on these positions ahead of Wednesday’s presentation of the highly-anticipated budget, said the note that was sent to clients on Tuesday and seen by Reuters on Wednesday.

Finance minister Rachel Reeves is expected to outline tens of billions of pounds in tax increases.

Since late October hedge funds have been selling large amounts of stocks of companies that primarily operate, offer products and generate revenue within the UK, the note said.

A short position represents a bet that asset prices will fall, whereas a long one is a wager that they will rise.

The budget

See Full Page