Hedge funds took advantage of the recent hawkish Federal Open Market Committee (FOMC) meeting to take profits in technology stocks and winners, according to UBS Securities and Treasury. On Wednesday’s FOMC and Thursday last week, hedge funds reduced their exposure to US and European equities by selling long positions, seeking to profit from high conviction ideas and winners.

The move comes as a result of the hawkish “risk management” cut in US rates, which led to a decrease in appetite for risk among investors. Hedge funds responded by cutting 1std of gross risk to the US and Europe, with estimates showing that equity long/short performance is up 1% globally month-to-date.

The decision to take profits in technology stocks and winners is likely a strategic move by hedge funds to lock in gains and manage risk amidst market volatility. With the hawkish FOMC meeting behind us, it will be interesting to see how hedge funds continue to navigate the markets in the coming weeks.

The actions of hedge funds highlight the importance of nimble risk management strategies in today’s fast-paced investment landscape. By taking profits in technology stocks and winners, hedge funds are demonstrating their ability to adapt to changing market conditions and maximize returns for their clients.