Energy Stocks Tumble On Massive Hedge Fund Shorting As Mutual Fund Tax-Loss Selling Hits Tech

According to Goldman's Prime Brokerage (which earlier this weekend revealed a record stretch of hedge fund shorting of US stocks pushing net exposure and prices sharply lower), the bank's trading desk last week we saw "significant tax loss sales from the mutual fund community", primarily concentrated in lower quality pockets of tech.

The apex of this supply occurred on Thursday as the executed flow across the bank's US equities franchise ended with Asset Managers having a -20.33% sell skew (ranked in the 93rd percentile vs previous 52 weeks). This supply was most highly concentrated in tech (tech sector had -14% sell skew...highest since 9/19/23 and 80th percentile on 52 week look back).

Info Tech was also by far the most net sold sector on the bank's global Prime book last week, driven by both long and short sales (1.3 to 1).