Hedge Funds Unload Tech Stocks After Going All-In Before Nvidia

Hedge funds piled into tech stocks in the weeks before Nvidia Corp. earnings. Now, they’re cashing out and selling at the fastest pace in seven months.

Professional managers offloaded their positions for four straight sessions last week, including Thursday, the day after Nvidia posted results, according to data from Goldman Sachs Group Inc.’s prime-brokerage unit. The intensity of the selling ranks in the 98th percentile of the past five years.

The data suggests traders are booking profits on their tech wagers after a six-week buying streak and putting that extra cash into less volatile stocks, such as consumer staples. Companies that make household products saw the most net buying in 10 weeks, according to Goldman’s prime brokerage.

Prime Book Cumulative US Net Trading Flow

Goldman Prime Broker Stats