Technology is the second worst-performing S&P 500 sector year-to-date with about an 8% loss, after consumer discretionary stocks which have tumbled just over 9%.
Hedge funds were caught in crowded trades that sold off leaving those which pick stocks with a 1% average return on the year so far, said the Goldman Sachs note sent to clients on Thursday and seen by Reuters on Friday. U.S. stock pickers finished down 1.4% on Thursday, taking their yearly performance to negative 0.5% for 2025, so far, the note said.
Hedge funds that employ different kinds of trading strategies also had "a challenging day," said the Goldman note. This kind of hedge fund which for the last three years has produced consistently positive returns has this year lost money 18 out of 29 days since January 27, said Goldman.