Hedge Funds Offload Tech Stocks Amid Tariff Concerns

Hedge funds have offloaded technology stocks at the fastest rate in six months, reaching a five-year high as they brace for potential economic instability from US President Donald Trump's tariff plans. According to Goldman Sachs, hedge funds have been net sellers of global equities for six consecutive weeks, with tech stocks accounting for 75% of the recent sell-off. The sell-off is driven by fears of a recession due to anticipated tariffs on copper and other goods. Notable short positions include Nvidia, Advanced Micro Devices, and Tesla. Analysts suggest that strong retail investor activity may have also influenced hedge fund strategies. The macroeconomic environment's uncertainty, exacerbated by Trump's aggressive tariffs, has prompted hedge funds to adopt a more defensive stance.