Tech
Hedge funds are “aggressively” shorting tech stocks
Hedge funds were “aggressively” selling technology stocks in the month that Nvidia briefly became the world’s largest company, according to Goldman Sachs.
This month’s sharp sell-off in the U.S. technology sector will be the largest since 2017, with semiconductor and semiconductor equipment stocks the biggest losers, followed by software and Internet stocks.
The data shows MoreoverHedge funds’ exposure to dynamic stocks fell for the first time in six months.
Overall, June has been a tumultuous month for stocks of major technology companies, with Nvidia, Microsoft, Amazon.com, Meta Platforms and Apple contributing significantly to the S&P 15’s 500% gain this year.
Although hedge funds have reduced their exposure, technology-related funds saw record inflows last week, driving the Nasdaq 100 to a new high on June 18. The technology sector’s share of the S&P 500 reached 33%, the highest level in about 24 years.
Defensive change isn’t limited to technology. Hedge funds are reducing risk across the board, with gross leverage – a measure of risk appetite – falling, especially in North America and Europe.