US software stocks to keep rebounding, says Goldman Sachs prime brokerage note

By Nell Mackenzie

LONDON, Feb 26 (Reuters) – Goldman Sachs prime brokerage said in a note that the recent bounce in software and IT services stocks may continue, even though this week, hedge funds were as short as they have ever been on the sector. 

A short position expects an asset price to fall. 

The S&P 500 software and services index has tumbled over 18% this year so far, shedding more than $1.2 trillion in market value, according to LSEG data. But this week, stocks in this index recovered and the index rose over 4% 

Key findings of the Goldman report:

* Goldman Sachs prime brokerage believes that the recentrecovery in software stocks will continue, it said in a note toclients on Wednesday, seen by Reuters on Thursday.  * Software and IT services were the top two shorted U.S.industries on February 24th on Goldman Sach’s prime brokeragetrading desk.  * Short positions have risen to the highest level on recordfor Goldman, which began tracking positions in 2016.  * Long positions, betting these stocks will rise, stand ata record low. 

(Reporting by Nell Mackenzie; editing by Dhara Ranasinghe)

Brought to you by www.srnnews.com

Click here to read the full article