Hedge funds are selling tech shares at their fastest pace in a decade as rates spike

Hedge funds are selling tech shares at their fastest pace in a decade as rates spike

Surging bond yields have triggered hedge funds to sell growth-focused technology shares at a speed not seen in the past decade. The hedge fund community dumped tech stocks in the four sessions between Dec. 30 and Tuesday as interest rates spiked. The four-session tech unloading marked the biggest sale in dollar terms in more than 10 years, reaching a record since Goldman Sachs' prime brokerage started tracking the data. Tech stocks are seen as sensitive to rising yields because increased debt costs can hinder their growth and can make their future cash flows appear less valuable. The tech-heavy has sold off more than 3% this week, underperforming the S&P 500, which dipped 1% during the same period. in the new year resumed Thursday, with investors assessing the Federal Reserve's faster-than-expected policy tightening. The yield on the benchmark  hit a high of 1.75% during the session, rising for a fourth straight day. The benchmark rate ended 2021 at 1.51%. Yields jumped after the , which showed the central bank could become even more aggressive than expected about raising interest rates and tightening policy. Goldman noted that hedge funds' selling of tech stocks is driven almost entirely by long sales, in