Hedge funds are cashing out of the tech sector and selling their stock holdings at the fastest pace seen in seven months, after piling in over the weeks leading up to Nvidia’s earnings, according to a report by Bloomberg.
The report cites data from Goldman Sachs’s prime brokerage division as revealing that professional investors cur their position for four consecutive sessions last week including Thursday, the day Nvidia posted its latest results.
According to Goldman Sachs, the speed of the sell-off ranks in the 98th percentile of the past five years, with the data indicating that traders are booking profits on their tech bets, following a six week buying streak, and are now switching to less volatile stocks including consumer staples, which saw the most net buying in 10 weeks last week.
