https://www.bloomberg.com/news/articles/2021-09-04/hedge-funds-slash-exposure-to-u-s-stocks-that-count-on-china
Hedge funds that make both bullish and bearish wagers on stocks are slashing their exposure to American companies that lean heavily on China for businesses, such as Las Vegas Sands Corp. and General Motors Co., according to data compiled by Goldman Sachs Group Inc.’s prime brokerage unit.
Companies with elevated sales from China were dumped as fund managers cut their net holdings by 26% over the month through late August to the lowest level since April 2020, client data from Goldman show. Meanwhile, those counting on the Asian country for supplies saw their ownership fall 17% toward the bottom range of the past year.
At the moment, U.S. companies doing business in China face potential risks of slower growth in the country and increased regulatory scrutiny, he added. “In either case, the logical thing to do would be to reduce your exposure to companies that have either one of those situations.”