As a trader on Goldman’s desk, John Flood provides valuable insights into the current market dynamics. In his latest update, he highlights the significance of hedge funds in driving corporate buyback activity. According to Flood, hedge funds are responsible for a large majority of the activity on the trading desk. This is particularly true in the healthcare sector (HC), where demand from hedge funds remains consistent.

Flood also notes that Goldman’s corporate buyback desk has been active throughout the year, with a daily average notional executed of 1.3x. This suggests that there is ongoing demand for buybacks until December 19th (blackout). Meanwhile, Flood characterizes the activity of CTAs (commodity trading advisors) as a “non-event” at current market levels.

It’s worth noting that hedge funds are known for their active approach to investing, often leveraging various strategies such as long/short equity, event-driven, and activist tactics. As such, it’s unsurprising that they play a significant role in corporate buyback activity. However, the extent of their influence is an important factor for traders and investors to consider when making decisions.