Shares of technology companies fell as investors sold out of some of the biggest winners from the 2020 bull market.
Shares of Apple and Tesla, which have led the broad stock market since the lows in March, fell sharply. One hedge-fund manager, who is currently taking a bearish position on the broad stock market, said selling mega-cap tech stocks may be the one of the few routes available for bullish investors to hedge their exposure to the broad market on a volatile session.
"It's almost impossible to hedge longs here," said Lorenzo Di Mattia, manager of hedge fund Sibilla Global Fund. "Puts [are] very expensive. And U.S. Treasurys have very little upside ... And you can't even think about shorting single stocks obviously."
Like GameStop, Tesla had a large quotient of shares borrowed short as of Jan. 26, according to data from S-3 Partners.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-29-21 1709ET
