Global hedge funds in June sold U.S. shares of technology, media, and telecommunications (TMT) companies at the fastest pace since 2016, with semiconductor stocks leading the way, according to a Goldman Sachs report. The sell-off suggests a shift in sentiment among portfolio managers who may have grown more bearish on tech stocks despite the sector’s strong rally in the first half of the year. Although the report does not specify reasons for the trend, it highlights that semiconductor and software stocks were the most sold sectors, while investments in tech hardware and electronic equipment increased.
Tech stocks significantly contributed to the S&P 500 index’s (.SPX) robust performance in the first half of the year, with AI chipmaker Nvidia (NVDA.O) surging 150% and accounting for 30% of the index’s 15% return. Overall, hedge funds net sold global equities for the third consecutive month, largely driven by short sellers betting on price declines. Goldman Sachs noted that June’s notional net selling was the largest since June 2022.