Hedge funds are increasingly using U.S. Treasuries to park cash in the short term while waiting for more attractive investment opportunities. As of September 30, 2025, hedge funds held 8.5% of all outstanding Treasuries, significantly higher than the 4.5% they held back in 2023. This trend appears to be continuing into 2026, with hedge funds holding nearly $2.4 trillion in long Treasury positions as of June. Much like Berkshire Hathaway, this could reflect a “taking chips off the table” approach, preserving capital and liquidity until better opportunities emerge.
Note: Data are monthly through September 2025. Physical Treasury holdings estimated as in Banegas et al. (2021).
Sources: SEC Form PF, U.S. Department of the Treasury Fiscal Service via FRED
Sources: SEC Form PF, Office of Financial Research
This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.
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