Hedge Funds Slash Faang Exposure to Two-Year Low Before Earnings
- Profit growth seen trailing S&P 500’s in next three quarters
- Tech giants feel the pinch of supply-chain woes, lack of labor
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Hedge funds that make both bullish and bearish wagers on stocks are turning skeptical on tech megacaps just days before earnings from the likes of Apple Inc. and Facebook Inc.
Their exposure to the five biggest American companies slipped over the past month, hitting the lowest level in more than two years, according to Goldman Sachs Group Inc.’s prime broker. Meanwhile, options traders -- who rushed in to bet on quick gains in 2020 -- are retreating. Total call open interest on that small group of U.S. giants sank to a 14-month low, data compiled by Bloomberg show.