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Alternative Market Briefing

Opalesque Roundup: Global hedge funds aggressively selling tech stocks: hedge fund news

Monday, July 08, 2024

In the week ending July 5th 2024, a Reuters report quoted Goldman Sachs saying that 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. 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.

In a separate report, JPMorgan added that the move by hedge funds to dump technology stocks in June has reduced the potential for a sharp overall correction in equity markets. JPMorgan has now said the June sell-off of tech stocks has made markets less susceptible to a possible crash.

In the meantime, new hedge fund launches surged while liquidations remained steady to begin 2024 as industry assets hit a record level of $4.3 trillion while fund managers positioned for growing geopolitical risk, representing potential for significant policy shifts, financial market volatility and destabilizing dislocations. The estimated number of new hedge fund launches in 1Q24 surged to 146, an increase of 70 percent from the prior quarter and the highest level since 1Q22

In new launches, Segantii alum's new hedge fund gets Hong Kong regulator's nod - a new hedge fund firm led by a former Segantii Capital Management Ltd. portfolio manager said it won approval in principle from Hong Kong'......................

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