While traders have said hedge funds could be bailing out on these stocks, the larger question is the extent to
which retail investors — given how vulnerable they can be to mood shifts in the market — will stick with them.
Compared with the $688 billion held in traditional mutual funds
and their faster-growing cousins — exchange-traded funds, or E. T.F.s, which trade on stock exchanges — that is a very small figure
Yet it has been this lack of an identifiable cause — a disappointing earnings result or a major
investor’s unloading stock, for example — that has been worrying some market specialists.
A Slump in Tech Stocks That Leaves Some Investors Mystified -
By LANDON THOMAS Jr. JUNE 12, 2017
The laws of gravity apparently apply to technology stocks after all.
The bell does not ring at a stock market peak, the note explained,
but there have been periods in recent history when investors, after riding a small group of stocks up to unexpected highs, have abandoned them en masse.
UBS was not the only major investment firm weighing in late last week about the heavy influence of these stocks in investor portfolios.
Hedge funds as an investor class, according to FactSet, hold just $58 billion in these stocks, which are collectively known by the acronym Faang.
In the last two trading days, Netflix has lost 8.9 percent while Apple has lost 6.3 percent.
