Hedge funds spent last week selling their winners at the fastest pace since the meme stock craze in January 2021 as the world’s largest technology companies got hammered.
The cohort “aggressively unwound risk across their long and short books” for the week ending July 19, according to Goldman Sachs Group Inc.’s prime brokerage desk. The move, which came as the S&P 500 Index posted its worst weekly decline since April, is a continuation of a trend since May of funds unloading shares to have more cash ahead of the US presidential election.