Morgan Stanley reported that global hedge fund exposure to American software stocks hit a "multi-year low" last week, after a widespread sell-off in the technology sector.
Learned from the Zhitong Finance app, Morgan Stanley reported that global hedge fund exposure to American software stocks hit a "multi-year low" last week, after a widespread sell-off in the technology sector.
Morgan Stanley said, "Software is the most sold-out industry, continuing the net selling trend since the end of April and bringing the risk exposure to a multi-year low."
The rise in US stocks driven by a few technology stocks has raised concerns among some investors that if market sentiment changes, the stock market gains may evaporate.
Morgan Stanley tracked the flow of hedge fund funds through its bulk brokerage department. Overall, portfolio managers net sold stocks in the United States, Europe and Asia (excluding Japan) last week.
Last week, the S&P North American Technology Software Index fell by about 2%, but has still risen 8.8% this year. 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.