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Odey and Brook among short sellers hit by $18bn losses on tech stock rally

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Several big-name hedge fund hedge fund firms, including Crispin Odey’s Odey Asset Management and James Hanbury’s Brook Asset Management have racked up big losses on the back of a 16% rally in the Nasdaq Composite so far this year, according to a report by the Financial Review.

Several big-name hedge fund hedge fund firms, including Crispin Odey’s Odey Asset Management and James Hanbury’s Brook Asset Management have racked up big losses on the back of a 16% rally in the Nasdaq Composite so far this year, according to a report by the Financial Review.

The rally has been fuelled by better-than-expected earnings from a number of big name tech stocks including Microsoft and Meta. The latest gains have seen the combined market value of the five biggest tech companies jump by 31% ($1.9 trillion) this year. 

The report quotes Peter Hillerberg, co-founder of data group Ortex, which calculated the $18 billion of total losses, as saying that: “The tech sector rally has caused significant losses for short sellers”.

As well as losing out on bets against tech giants Meta, Microsoft and Tesla, hedge funds that shorted semiconductor stocks have also lost $8 billion so far this year, according to Ortex, while investors who bet against technology hardware and storage businesses lost $4.6 billion. Bets against other parts of the US tech industry amount to more than $5 billion.
 

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