Hedge Funds Sell Tech Stocks ‘Aggressively,’ Goldman Says
Posted: Jun 27, 2024
- Hedge funds are aggressively selling tech stocks, according to analysis from Goldman Sachs Group Inc. - This month's net selling in the US tech sector is on track to be the largest on record since 2017, with semiconductor and semiconductor equipment stocks being the most offloaded. - Nvidia shares have been volatile after losing $430 billion in market value last week, and June has been a volatile month for Big Tech stocks. - Hedge funds are trimming exposure to tech stocks, in contrast to record inflows seen into tech-related funds last week. - Momentum factor-style investing that drove Nvidia to all-time highs is faltering, with hedge funds' momentum exposure poised to decrease for the first time in six months. - Hedge funds are now tilting more defensively than usual, with gross leverage declining in North America and Europe. - Trading flows from recent sessions point to some risk unwinds in hedge funds' portfolios.
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