By Nell Mackenzie LONDON, Feb 26 (Reuters) – Goldman Sachs prime brokerage said in a note that the recent bounce in software and IT services stocks may continue, even though this week, hedge funds were as short as they have ever been on the sector. A short position expects an asset price to fall. The […]
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US software stocks to keep rebounding, says Goldman Sachs prime brokerage note
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By Nell Mackenzie
LONDON, Feb 26 (Reuters) – Goldman Sachs prime brokerage said in a note that the recent bounce in software and IT services stocks may continue, even though this week, hedge funds were as short as they have ever been on the sector.
A short position expects an asset price to fall.
The S&P 500 software and services index <.SPLRCIS> has tumbled over 18% this year so far, shedding more than $1.2 trillion in market value, according to LSEG data. But this week, stocks in this index recovered and the index rose over 4%
Key findings of the Goldman report:
* Goldman Sachs prime brokerage believes that the recentrecovery in software stocks will continue, it said in a note toclients on Wednesday, seen by Reuters on Thursday. * Software and IT services were the top two shorted U.S.industries on February 24th on Goldman Sach’s prime brokeragetrading desk. * Short positions have risen to the highest level on recordfor Goldman, which began tracking positions in 2016. * Long positions, betting these stocks will rise, stand ata record low.
(Reporting by Nell Mackenzie; editing by Dhara Ranasinghe)