Hedge Funds Dumped Big Tech Ahead of SpaceX's $1.77 Trillion IPO
Updated
Updated · Reuters · Jun 12
Hedge Funds Dumped Big Tech Ahead of SpaceX's $1.77 Trillion IPO
3 articles · Updated · Reuters · Jun 12
Summary
JPMorgan data showed hedge funds sold the biggest U.S. tech stocks late last week, with some adding bearish bets just before SpaceX's Friday market debut.
The retreat hit the Magnificent Seven as investors cut risk and cleared room for the IPO; the Roundhill Magnificent Seven ETF has fallen more than 2.4% since June 5.
Selling was broadest in U.S. software, while semiconductor shares still drew strong demand and some speculators bought the dip in beaten-down tech names.
Money also rotated into financial-themed ETFs, with funds favoring traditional asset managers; SpaceX is seeking a $1.77 trillion valuation despite a $4.94 billion net loss in 2025.