The world’s top hedge funds are dumping technology stocks at the fastest pace in six months amid the current market carnage.
Data from investment bank Goldman Sachs’ (GS) prime brokerage unit shows that hedge fund managers have turned bearish on leading tech names such as Apple (AAPL), Alphabet (GOOGL), and Nvidia (NVDA) as they position themselves defensively amid the volatility cause by U.S. President Donald Trump’s aggressive trade tariffs and growing signs of slowdown in the American economy.
Professional traders and hedge funds across Wall Street have been net sellers of stocks for the past six weeks, with the selling accelerating and now at its fastest pace since last July. Goldman notes that the selling of technology stocks over the last week was the second largest amount in the past five years as hedge funds batten down the hatches in the current market storm.
Bearish Sentiment
Bank of America (BAC) has also highlighted the bearish sentiment among hedge funds and other professional money managers, stating in a note to clients that “sentiment in all conversations is pretty bearish. It seems like long/short books are very tight, from a risk/exposure perspective… The mood is very very cautious.”
Hedge funds are in full retreat at a time when the macroeconomic environment in the U.S. has grown uncertain. President Donald Trump’s aggressive tariffs, along with signs of weak consumer spending, slowing economic growth, and a resumption of inflation have many analysts and economists forecasting a recession in the U.S. this year.
Hedge fund managers, and other investors, are bracing for Trump’s imposition of reciprocal tariffs on “all countries” starting April 2. Trump has already imposed tariffs on aluminum, steel and vehicles, along with increased tariffs on all goods from China.
Is AAPL Stock a Buy?
The stock of Apple has a consensus Moderate Buy rating among 32 Wall Street analysts. That rating is based on 17 Buy, 11 Hold, and four Sell recommendations assigned in the last three months. The average AAPL price target of $249.88 implies 13.76% upside from current levels.
