Hedge Funds Bought the Dip as Nasdaq Tumbled Into a Correction
- Goldman Sachs data show largest two-day buying in five months
- Appetite reviving amid concern over tech-bubble valuations
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Hedge funds stepped up buying of technology shares during the Nasdaq 100’s first correction since March, once again warming up to the industry after trimming stakes.
Professional managers that make both bullish and bearish equity bets scooped up internet and software companies on Friday and Tuesday at the fastest rate in five months, according to data compiled by Goldman Sachs Group Inc.’s prime-brokerage unit. Meanwhile, hedge-fund clients at Morgan Stanley increased their exposure to growth and momentum stocks, styles dominated by tech companies, the firm’s data showed.