The Kobeissi Letter: Institutional Investors Are Actively Selling U.S. Stocks at the Fastest Pace Since October Last Year

February 6th Per The Kobeissi Letter, institutional investors are actively offloading U.S. stocks. Hedge funds sold U.S. equities at the fastest clip since last October on Wednesday—marking their second straight day of selling, driven primarily by short-selling followed by long position unwinds. This is also the fifth net outflow for hedge funds in the past six trading sessions. As a result, five of the 11 U.S. stock market sectors have seen liquidations, with information technology, industrials, and materials hit hardest. Subsectors facing the most pressure include semiconductors & semiconductor equipment, communication equipment, and technology hardware. The report notes this signals a shift in hedge fund sentiment.