Goldman: hedge funds have been selling TMT stocks for four consecutive weeks, and the consumer discretionary sector has become a new favorite.

Goldman's Prime Services desk reported last week that hedge funds sold equities in the Information Technology and Communications Services sector for the fourth consecutive week. This is the seventh week in the past eight weeks that the sector has seen net selling.

Goldman's analysis showed that the selling activity last week was driven by both longs and shorts at a 4:1 ratio. In the Information Technology sector, net selling was seen across all subsectors except IT Services, with software, technical hardware and electronic equipment being the main areas of net selling. In the Communications Services sector, net selling in Interactive Media & Services, Entertainment and Broadband exceeded net buying in Media.

The report further noted that TMT stocks currently account for 29.6% of the overall net short positions in the US, ranking sixth among sectors in the year-to-date, and 16th among the past five years. TMT stocks typically refer to the large-cap stocks of the Technology, Media and Telecommunications sectors. The concept covers a wide range of areas, including internet, e-commerce, software, hardware, semiconductors, telecommunication services, entertainment and media content, and is popular among investors for its innovation and high growth potential.

Meanwhile, the Consumer Discretionary sector was the largest net buyer in Goldman's Prime Services desk-managed or tracked investment portfolios or funds, and the trend was almost entirely driven by long-term buying. After three consecutive weeks of net selling, the sector has now seen net buying for the second consecutive week.

From a subsector perspective, Retail Expenditure and Professional Retailing were the largest net buyers, with net buying exceeding net selling in Hotels, Restaurants & Leisure, General Retailing and Home Furnishings.

Goldman's report reflects the market's preferences and investment dynamics across sectors, while also revealing the investment strategies and behavior patterns of hedge funds in the current market environment.