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March 16, 2025
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Hedge Funds

Hedge funds dump tech stocks at fastest pace since 2016, bank shows By Reuters


By Carolina Mandl

NEW YORK (Reuters) – Global hedge funds in June sold U.S. shares of technology, media and telecommunications (TMT) companies at the fastest pace since 2016, mainly driven by semiconductor stocks, Goldman Sachs said in note.

The sales could indicate that portfolio managers have become more bearish on tech stocks, after the sector’s powerful rally in the first half of the year, although the note does not provide any reason behind the trend.

The bank, which compiles its clients’ positioning for the data, said semiconductor and software were the top two most sold sectors in June, while hedge funds increased their allocation to tech hardware and electronic equipment.

Tech stocks led the ‘s strong performance in the first half of the year, with artificial intelligence chipmaker Nvidia (NASDAQ:) up 150% and generating 30% of the index’s 15% return.

© Reuters. FILE PHOTO: A smartphone with a displayed NVIDIA logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo

Overall, Goldman Sachs said hedge funds net sold global equities for a third straight month, almost entirely driven by short sellers who borrowed shares to sell on bets that the price will decline, enabling them to buy them back for less.

“This month’s notional net selling was the largest since June 2022,” the bank said in the note.





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