Hedge funds raced to cover their short wagers on US technology sector stocks at the second fastest rate in ten years during the first half of the month, as the recent market rally continued, according to a report by Reuters.
The report cites an investor note from Goldman Sachs as saying that “short covering” in the period from 31 Jan to 15 Feb was “the second largest in magnitude over any 12-day period in the past decade”.
A note from JPMorgan meanwhile highlighted that multi-strategy and equity quantitative hedge funds led the short covering.
Both the Nasdaq and the S&P 500 are up 14% so far this year with the indexes seeing gains of 2.7% and 4% respectively so far this month.
