By Carolina Mandl
NEW YORK (Reuters) – Global hedge funds have cut their exposure to U.S. stocks for five days in a row amid a market-wide pullback in mega-cap tech-related stocks, Goldman Sachs said in a note on Wednesday.
The value of equity hedge funds dumped over the past five trading sessions was the largest since November 2022 and close to a five-year high, Goldman said, without providing figures.
Hedge funds sold U.S. technology stocks in seven of the last eight trading sessions, the report said.
On Wednesday, the tech sell-off led to a decline of 2.77% and a decline of 1.39%. The increase 0.59%.
Goldman Sachs, one of the largest global providers of equity trading and financing for hedge funds, tracks its clients’ portfolios to analyze trends.
The risk reduction was led by the information technology sector, followed by industrials, healthcare, consumer discretionary and communications services, Goldman said.
Morgan Stanley, which also runs a major prime broker, said late last week that hedge funds’ exposure to U.S. software stocks had hit “new multi-year lows.”
