Hedge Funds Dump Tesla, ETF Slides 2.4% Ahead of SpaceX IPO
TSLA•Hedge funds sold Tesla and other Magnificent Seven stocks, driving the Roundhill Magnificent Seven ETF down 2.4% since June 5 as investors rotated ahead of SpaceX’s record-setting IPO valuing at $1.77 trillion. JPMorgan data shows funds trimmed U.S. software positions while boosting semiconductors and rotating into financial ETFs.
1. Hedge Funds Exit Tesla and Other Tech Stocks
Hedge funds reduced their positions in Tesla and the other six Magnificent Seven members, adding bearish bets as part of a broader de-risking move revealed in JPMorgan’s analysis of late-week trading.
2. ETF Tracks 2.4% Drop
The Roundhill Magnificent Seven ETF, which closely follows these technology giants, has fallen 2.4% since June 5, mirroring the swift selloff ahead of SpaceX’s market debut.
3. Sector Rotation Strategies
Investors trimmed U.S. software holdings while increasing exposure to semiconductor makers and financial ETFs, signaling a shift toward sectors with stronger near-term demand.
4. SpaceX IPO Spurs Rebalancing
Clients cleared tech positions to prepare for SpaceX’s IPO, which targets a $1.77 trillion valuation, potentially reshaping capital flows across major tech names.
