Reuters
Computer-driven macro hedge fund strategies on Wednesday sold $20 billion in equities and are set to shed at least more $25 billion over the next week after the stock rout, in one of the largest risk-unwinding events in a decade, Morgan Stanley said in commentary to institutional clients on Thursday. If volatility persists in the coming days, the sell-off would rapidly increase, Morgan Stanley said in their commentary, declining to comment further. An additional 1% day-drop in global equities could spark sales of $35 billion and macro hedge funds could dump up to $110 billion in a 3% day fall.