Institutional investors have continued to reduce exposure to the semiconductor sector, with hedge funds selling chip and tech hardware stocks for a fourth consecutive week.
The sustained outflows, highlighted in a recent client note from Goldman Sachs, underscore a broadening decline in global chip shares and suggest that the recent volatility in the sector is not merely a short-term correction but a structural shift in sentiment.
Frazis, whose assets fell nearly 70% during the previous market downturn, has shifted his capital away from high-beta semiconductor names, reflecting a broader trend of risk aversion among active managers.
The selling pressure comes as prominent market figures adjust their strategies in response to the downturn.
Michael Frazis, co-founder of Stocktwits, has significantly overhauled his investment approach, moving away from the discretionary stock-picking methods that contributed to a severe portfolio drawdown in 2022.
Frazis, whose assets fell nearly 70% during the previous market downturn, has shifted his capital away from high-beta semiconductor names, reflecting a broader trend of risk aversion among active managers.
This institutional retreat contrasts with recent price action in some regional markets, where semiconductor rebounds have temporarily snapped losing streaks.