Hedge Funds Reduce Positions in iShares MSCI Emerging Markets ETF

In a recent report, hedge funds exhibit a bearish trend toward iShares MSCI Emerging Markets ETF (EEM) as they collectively reduce their holdings. This decline could indicate a shift in market sentiment that might negatively influence EEM's stock performance.

Date: 12-02-2025

AI Rating: 4

Hedge Fund Positions Analyzed
Recent 13F filings have revealed that hedge funds are collectively reducing their positions in iShares MSCI Emerging Markets ETF (EEM). Notably, the aggregate share count fell by approximately 2.13%, decreasing from 90,318,273 to 88,393,981 shares.

Key observations from the filings include that nine hedge funds reported holding EEM. However, significant negative changes were noted:

First American Trust FSB reduced its share count by 867 shares, resulting in a market value decrease of $486.
Carrhae Capital LLP made a new position but with a dramatic reduction of 4,403,300 shares, leading to a massive market value drop of $184,146.
Other existing funds varied in their positions, with some making minimal adjustments, but the overall trend suggests a cautious approach.

This trend is reinforced by two funds increasing their existing positions while two decreased, underlining a lack of consensus among fund managers. Overall sentiment appears bearish, which could drive supply beyond demand for the ETF, potentially affecting its price negatively. Hedge funds, when acting in unison, suggest significant market sentiment shifts, and the declining aggregate share count is concerning for future performance.
Given these observations, investors should closely monitor EEM as these changes in hedge fund holdings could result in increased volatility and price adjustments.

Stocks: EEM