Hedge Funds Again Shorting Risky Tech After Rally Forced Unwind
- Exposure to unprofitable tech near the lowest level since 2018
- Index shorts fall while bets for single stocks stay elevated
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Professional speculators aren’t convinced that the worst is over for one risky corner of the stock market despite a rousing new-year rally.
Hedge funds that make both bullish and bearish equity wagers have returned to betting against unprofitable technology shares this month after being forced to unwind some positions earlier. Thanks to the increase in shorts, their overall exposure to these companies fell to near the lowest level since 2018, data compiled by Morgan Stanley’s prime brokerage show.