economy
February 4, 2026
Hedge funds made $24 billion shorting software stocks so far in 2026
Hedge funds are increasing their short bets against software stocks, contributing to the brutal sell-off in the space so far this year, according to sources at two major funds on Wall Street.
TL;DR
- Hedge funds are increasing their short bets against software stocks.
- This activity is contributing to the significant sell-off in the software sector this year.
- Information comes from sources at two major Wall Street hedge funds.
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