Hedge Funds Sell Tech Stocks at Fastest Pace Since 2016

Hedge funds executed the fastest three-day tech sell-off since 2016 and largest exposure cut since Nov 2022, driven by macro product short covering.

Woofun AI data shows that hedge funds sold global information technology stocks at the highest rate in a three-day period since records began in 2016 through July 28. This activity coincided with the largest three-day reduction in total stock exposure since November 2022, with selling pressure extending across all sectors.

The unwinding was primarily driven by short covering in macro products such as index futures and ETFs. Single stocks recorded their fifth-largest three-day selling volume over the past five years, with North America accounting for the majority of volume followed by Europe.