Hedge funds sold off global technology stocks in three days, hitting a new high since 2016

On July 31, The KobeissiLetter issued an article on the X platform stating that in the three days ending July 28, hedge funds sold global information technology stocks at the highest level since data were available in 2016. At the same time, hedge funds recorded the largest three-day decline in total equity exposure since November 2022, and selling pressure spread to all sectors. The closing was mainly driven by short covering in macro products such as index futures and ETFs. In addition, a single stock recorded the fifth largest three-day sales in the past five years. By region, North America accounted for the majority of sales, followed by Europe. Hedge funds are significantly reducing their stock exposure.