财华社
2024.07.10 11:28
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Hedge funds and executives "sell out" US stocks overnight, are retail investors picking up the pieces?

Hedge funds and executives sold US stocks overnight, with technology stocks being dumped. Nvidia has risen by 165.35% this year, TSMC has accumulated a 78.69% increase, while top technology stocks such as Apple, Microsoft, and Amazon have also risen. However, as stock prices rise, technology stocks are being sold off by large funds and shareholders. Hedge funds have been actively selling off the technology sector in the past month, with the consumer goods sector being heavily shorted. Amazon's Bezos and Nvidia executives have also reduced their holdings. In addition, Tesla's stock price has soared

In this wave of tech frenzy, Nvidia (NVDA.US) has surged by 165.35% this year, while TSMC (TSM.US) has also risen by 78.69%. In addition, top tech stocks such as Apple (AAPL.US), Microsoft (MSFT.US), Amazon (AMZN.US), etc., have also seen increases.

Following the continuous surge, the stock prices of many tech giants have recently reached new highs since their listing.

It is worth mentioning that with the continuous rise in stock prices, tech stocks have begun to face selling pressure from some large funds and shareholders.

On July 1st (local time), Goldman Sachs analyst Vincent Lin pointed out that hedge funds have been actively selling and shorting the TMT sector (technology, media, and telecommunications) in the past month, with a focus on semiconductor stocks, including Nvidia. In June alone, hedge funds' net sales in the US TMT sector are set to reach a record high for Goldman Sachs' major brokerage business.

Looking at sectors, out of the 11 major sectors in the US stock market, 8 sectors have seen net selling, including IT, consumer staples, real estate, and financial sectors. The consumer staples sector has been heavily shorted, with net selling for the third consecutive week. Meanwhile, the industrial, materials, and energy sectors have seen net buying.

In addition to hedge funds, tech stocks that have surged are also facing selling pressure from their own shareholders and executives.

According to documents disclosed by the US Securities and Exchange Commission on July 9th, Amazon's Bezos sold 4.3141 million shares of common stock at an average price of $200.15 per share on July 5th and 8th, totaling approximately $863 million.

Recently, Bezos disclosed a plan to sell 25 million shares of Amazon stock after hours, with the stock value close to $5 billion. The sales on July 5th and 8th are part of this plan.

Earlier in February, Bezos also sold Amazon stock worth $8.5 billion.

Furthermore, Nvidia, which has seen the most aggressive rise, has also not escaped the fate of being sold. It is reported that in June, Huang Renxun sold 1.3 million shares of Nvidia stock, worth approximately $169 million, marking his largest single-month sale of Nvidia shares.

Media reports also suggest that Nvidia executives and directors are expected to cash out over $700 million by selling Nvidia stock in the first half of this year.

Recently, Tesla (TSLA.US) achieved a "ten-day consecutive increase" milestone, with its stock price soaring by 43.68% in 10 trading days.

On July 2nd (local time), ARK Invest, led by "Cathie Wood," made significant adjustments to its investment portfolio. Its two ETFs, ARKK and ARKW, reduced their holdings of Tesla by 56,425 shares and 6,442 shares respectively, totaling approximately $145.4 million.

It is understood that this is the first time ARKK has sold Tesla shares since October last year.

In addition, incomplete statistics show that in 2024 alone, Apple has been significantly reduced by Buffett, Meta (META.US) has been reduced by its founder Mark Zuckerberg, and Salesforce (CRM.US) has also been reduced by co-founder and CTO Parker Harris.

It is evident that amidst the rise and all-time highs of the U.S. stock market, there has been considerable selling pressure.

So, who is buying?

Independent research firm Vanda Research points out that hedge funds are likely selling a large number of tech stocks to retail investors. Beneath the calm surface of the market, there may already be a significant turnover of stocks, with hedge funds possibly selling a record number of tech stocks to retail investors.

Among these retail investors, there may be many domestic investors. Recently, there has been a premium in QDII funds such as the Nasdaq Technology ETF (159509), U.S. 50ETF (513850), Nasdaq 100ETF (513110), and Nasdaq ETF (159941) in the A-share market, indicating that many domestic investors are buying in.

It is worth noting that many Wall Street investment banks are still bullish on the U.S. stock market. These banks may genuinely believe in the continued AI frenzy, but it cannot be ruled out that these "big players" are using bullish sentiment as a cover to unload their positions.

Tech stocks have been the driving force behind the continuous rise of the U.S. stock market in this round. Once tech stocks cool off, the market is likely to turn from a bull to a bear, potentially repeating the scene of chaos after the previous internet frenzy. This risk cannot be ignored