US-based hedge funds that are focused on technology investments are bracing for heavy losses this year as economic data continues to decline.
Last Tuesday, September 12, a stock market index of publicly traded domestic companies (S&P 500) dropped by 4.3%. At the same time, many funds are already sitting on declines of 30% or more already.
David Moon, managing director at investment management firm Symmetric.io, said, “It will take a lot of work to get out of this hole.”
Investment companies such as Whale Rock Capital Management LLC’s main fund tumbled 38% through August while HMI Capital Management dropped 39% in the first eight months of the year, Casdin Capital was off 50% and SoMa Partners was off 31%.
According to Hedgefund Research (HFR), the S&P 500 Index fell 17%while the average hedge fund dropped four per cent through August. The HFR technology and healthcare index also plummeted by roughly 15%.
Meanwhile, last week, Goldman Sachs announced that hedge funds bank on tech stocks again turning it into a buying spree in the sector.