LONDON (Reuters) — Hedge funds purchased US tech and media shares on the quickest tempo in 4 months final week, stated a Goldman Sachs prime brokerage observe to shoppers seen by Reuters on Monday, spurred by the Federal Reserve’s anticipated 50-basis level charge lower.
Falling charges are anticipated to rejuvenate industrial spending, making it simpler for corporations to borrow cash at decrease prices and for customers to purchase tech merchandise, all of which could profit the inventory costs of those corporations.
Hedge funds positioned nearly 3 times as many lengthy positions on the wager that info know-how shares would rise, in comparison with these with bets towards them, stated the prime brokerage observe.
Shopping for in semi-conductor and associated tools corporations outweighed promoting in tech {hardware}, like pc, monitor and arduous drive producers, the Goldman Sachs observe stated.
Hedge funds additionally ditched their brief place and added lengthy bets on interactive media and leisure corporations, the observe stated.
A brief place expects an asset worth to fall.
The broader know-how (XLK) and media sector now makes up nearly a 3rd of general U.S. internet portfolio publicity, it stated.
Against this, shopper merchandise have been essentially the most bought on Goldman Sachs’ prime brokerage guide, the observe stated.
Promoting outweighed shopping for in U.S. shopper discretionary shares like inns and eating places for the primary time in 4 weeks and the sector suffered the biggest internet promoting in a yr, in response to the observe.
Gross leverage, or complete hedge fund borrowing and investments, reached roughly 278%, among the many highest ranges seen this yr, it stated.
(Reporting by Nell Mackenzie; Enhancing by Amanda Cooper and Emelia Sithole-Matarise)
