June 9, 2023


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A multibillion-dollar blow to hedge funds: they lost 180 billion in the tech boom

that it Financial Times, which wrote that hedge funds lost $18 billionor NOK 192 billion at today’s exchange rate, to gamble on lower technology stock prices, after seeing statistics from Ortex.

The past year was marked by soaring interest rates, soaring inflation and severe monetary policy tightening that severely punished technology stocks on global stock exchanges.

Many companies reported declining sales revenue and had to start layoffs, which many managers then bet would continue.

Giants Microsoft, Alphabet, owner of Google, owner of Facebook Meta, and Amazon have announced from November last year to March this year that they have cut 70,000 jobs.

Good Technology Week

Thus, the strong development this year — with the tech-heavy Nasdaq up 17 percent — may have come as a big surprise to those who are called short-term.

This week, the Nasdaq closed up 1.3 percent after several strong numbers from the tech giants.

On the Tuesday after the stock market closed, Alphabet and Microsoft delivered unexpectedly strong top-and-bottom numbers for the first quarter, sending stocks higher and dragging the rest of the stock market with them.

The same applies to Meta shares after the numbers on Wednesday night.

low clouds

Amazon also delivered stronger-than-expected numbers, but even so, the subsequent conference call spoiled the rally, which at one point was as high as 12 percent.

During the conference call, the company warned of a continued slowdown in its AWS cloud storage business.

Customers continue to evaluate ways to improve cloud storage spending in response to these challenging economic conditions. said the chief financial officer, according to the Financial Times.

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This continued into April, he added, with business volume growing about 500 basis points less than the first quarter. Suddenly, the stock fell 2 percent.