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Biggest Tech Selling in a Decade as Rate Rout Spooks Hedge Funds

  • Hedge funds are dumping their expensive software wagers
  • Extreme valuations are pressure point as Fed rate hikes loom
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Principal’s Shah Holds Tech Overweight for Volatile 2022
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The hammering in technology stocks that began to spread into the broader market Wednesday is being fueled by one of the most intense bouts of selling by professional speculators since the financial crisis. 

Hedge funds, which spent December unloading high-growth, high-valuation stocks, began the new year by jettisoning software and chipmakers at a furious pace. During the four sessions through Tuesday, these sales reached the highest level in dollar terms in more than 10 years, data compiled by Goldman Sachs Group Inc.’s prime broker show.