Hedge Funds Bailing on Expensive Tech at a Breakneck Clip
- IPOs, richly priced software extend losses for second day
- Retail-favorite shares join selloff amid souring sentiment
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A plunge in dizzily priced software and internet stocks is setting off a quick exodus among professional speculators who were counting on the group to salvage their year.
Hedge funds stepped up selling as the rout gathered pace Monday, bailing at the fastest pace in more than two months, according to Goldman Sachs Group Inc.’s prime broker. One particularly stretched category, software developers such as Zoom Video Communications Inc. and Asana Inc. that have enterprise value exceeding eight times sales, accounted for 90% of the total share disposal in that sector.