Morgan Stanley: US tech stocks fall out of favor, hedge fund holdings drop to multi-year lows last week
Morgan Stanley's report stated that after a widespread sell-off in tech stocks, global hedge funds' exposure to US software stocks last week hit a "multi-year low." Morgan Stanley stated: "Software is the most net sold industry, continuing the net selling trend since the end of April, and reducing risk exposure to a multi-year low." The rise in US stocks driven by a few tech stocks has raised concerns among some investors, who worry that if market sentiment changes, stock gains could evaporate. Morgan Stanley tracks hedge fund flows through its prime brokerage department. Overall, portfolio managers sold stocks net in the US, Europe, and Asia (excluding Japan) last week. The S&P North American Technology Software Index fell by about 2% last week, but is still up 8.8% year-to-date. The index includes companies such as Adobe, Salesforce, Microsoft, and Oracle. In addition to the technology, media, and telecommunications sectors, hedge funds also sold cyclical stocks that fluctuate with the economic cycle
According to the information from Zhitong Finance and Economics APP, a report from Morgan Stanley stated that after a widespread sell-off in tech stocks, global hedge funds' exposure to US software stocks hit a "multi-year low" last week.
Morgan Stanley stated: "Software is the most net sold industry, continuing its net selling trend since the end of April, and reducing risk exposure to a multi-year low."
The rise in US stocks driven by a few tech stocks has raised concerns among some investors, who worry that if market sentiment changes, stock gains could evaporate.
Morgan Stanley tracks hedge fund flows through its prime brokerage department. Overall, portfolio managers were net sellers of stocks in the US, Europe, and Asia (excluding Japan) last week, according to Morgan Stanley.
Last week, the S&P North American Technology Software Index fell by about 2%, but is still up 8.8% year-to-date. The index includes companies such as Adobe (ADBE.US), Salesforce (CRM.US), Microsoft (MSFT.US), and Oracle (ORCL.US).
In addition to the technology, media, and telecommunications sectors, hedge funds also sold cyclical stocks that fluctuate with the economic cycle