Hedge funds snap up tech stocks at fastest pace in five months

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NEW YORK, Oct 18 - Global hedge funds this week bought U.S. information technology stocks, such as semiconductors and hardware, at the fastest in five months amid the start of the third-quarter earnings season, according to Goldman Sachs on Friday.

Outside the U.S., diverging reports from chipmaker Taiwan Semiconductor Manufacturing , and chipmaking equipment supplier ASML Holding , moved shares in opposite directions while investors await semiconductor companies such as Advanced Micro Devices , and Nvidia , to unveil their earnings as they seek a trend.

Goldman Sachs' prime brokerage unit, which provides services for hedge funds and tracks their positioning, said portfolio managers net bought U.S. information technology stocks for the third straight week. Hedge funds both covered short positions - bets stocks will fall - and snapped up long positions.Overall, information technology accounts for 16.1% of hedge funds' U.S. exposure, down from roughly 22% it reached earlier this year.

On the flip side, hedge funds sold stocks in U.S. consumer sectors, from food products to beverages and restaurants for the fifth straight week, the bank said. The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc.

 

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