Hedge funds have seen a significant increase in their buying activity in US stocks after the recent presidential election. This marks a notable change from their cautious trading in previous months.

According to data from Goldman Sachs Group Inc.'s prime brokerage, hedge funds have been actively trading, with a focus on long positions. This increase in buying activity is mainly due to hedge funds covering short bets on both large-cap and small-cap exchange-traded funds. The increased engagement in the stock market reflects a renewed confidence among hedge funds as they adjust their strategies in the post-election landscape.