Hedge funds are dumping their stock holdings at the fastest pace in four years as tariffs and signs of an economic slowdown in the U.S.

Over the past five years, the U.S. stock market has experienced growth in trading volume. According to data from the World Bank, the total value of stocks traded in the U.S.

NEW YORK (Reuters) -Hedge funds reduced their exposure to stocks on Friday at the largest amount in more than two years, according to a Goldman Sachs note released on Monday. The bank added some hedge funds' large moves on Friday could be compared to what was seen in March 2020,

Hedge funds were caught in crowded trades that sold off leaving those which pick stocks with a 1% average return on the year so far, said the Goldman Sachs note sent to clients on Thursday and seen by Reuters on Friday.

Retail investors can learn a lot from tracking what hedge funds are buying and selling. Hedge funds are part of the “Smart Money,” and their large-scale transactions can give a sense of where the market may be headed Goldman Sachs analyzed 695 hedge funds that manage $3.