Hedge fund investors do not buy the idea that the US economy is headed for a recession in the near term, according to data from Goldman Sachs.

The bank studied the holdings of 835 hedge funds with $2.1tn of gross equity positions at the start of July, and found that overall these funds are overweight cyclical sectors, favoring stocks in Information technology, consumer discretionary, industrial and materials sectors relative to the Russell 3000 index.