© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 28, 2023. REUTERS/Brendan McDermid/File Photo
By Nell Mackenzie
LONDON (Reuters) – Global hedge funds ditched technology stocks by selling long positions and exiting short bets at the fastest weekly pace in seven months, Goldman Sachs said on Friday in a note to clients seen by Reuters.
In the period from Friday Nov. 10 to Thursday Nov. 16, traders dropped long and short positions on semi-conductor makers, as well as communications equipment providers, while exiting long positions on software companies, just as stock valuations climbed to a two-month high, well above a long-term average.
A short bet is one that counts on a stock price falling.
Frothy valuations and waning hedge fund interest might mark the end of the tech “performance concentration” seen over recent years, Florian Ielpo, head of macro at Lombard Odier Investment Managers, said.
“Equities valuations are expensive but it’s hard to say by how much. To surpass this level, we need earnings growth, and a lot of that is priced in already given analysts’ expectations for next year,” he…
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