In this article, we will take a look at 10 stocks hedge funds are selling in 2025.
Hedge fund returns went up in July 2025, helped by stock markets reaching record highs, though some funds faced challenges from US trade uncertainties, according to a Goldman Sachs report. Goldman Sachs said hedge fund stock pickers gained almost 1.5% in July and are up about 7.8% so far this year.
Systematic hedge funds that trade stocks were set to have their worst month on record, but bounced back after July 25, recovering about half their losses and ending July down 2%. These funds are still up 10% for the year. Stock-picking hedge funds did well by investing in popular trades, while algorithm-based funds struggled with the heavy trading. The S&P 500 hit record highs in July but only returned 1.38%.
As per an Aurum report, hedge fund assets grew by $148.4 billion since the end of 2024, reaching $3.2 trillion. This increase came from $112.3 billion in positive returns and $36.1 billion in new investor inflows. All eight main hedge fund strategies saw growth in assets, led by multi-strategy, followed by macro, long-biased, and quant funds. For equity long/short and long-biased funds, the growth was mainly due to strong returns, partly offset by some investor withdrawals.
The first half of 2025 saw a lot of market ups and downs, from changes in Treasury yields to trade irregularities and big swings in currencies, commodities, and stocks. Despite the chaos, systematic hedge funds and quant strategies did well, taking advantage of patterns in the market. Top performers included Marshall Wace’s TOPS, Renaissance Institutional Equities Fund, and AQR Delphi Long-Short Equity, all up about 11%, Voleon Composite up 12.8%, and Two Sigma Spectrum up 7.6%.
On the other hand, trend-following funds, which rely on steady market moves, struggled, with Systematica Bluetrend dropping 17% and Man AHL Alpha falling 7.6%. Strategies that focus on trends like momentum continued to do well, and international stocks often outperformed American ones. Even with smart computer-driven strategies, human oversight was still needed to handle unexpected events in the market.
While funds sought out new stocks, they also sold shares that were previously held. With that outlook in mind, let’s take a look at the stocks that hedge funds are selling in 2025.
Stock market data. Photo by Photo by Alesia Kozik
Our Methodology
For this article, we conducted a manual review of the Insider Monkey database to identify stocks that were offloaded by more than 15 hedge funds between Q4 2024 and Q1 2025. The 10 selected stocks saw hedge fund selling during the quarter, but also garnered recent attention from Wall Street analysts and mainstream media.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Caesars Entertainment, Inc. (NASDAQ:CZR)
No. of Hedge Funds That Exited the Stock in Q1 2025: 16
Caesars Entertainment, Inc. (NASDAQ:CZR) is one of the top stocks sold by hedge funds. On July 30, Stifel reiterated a Buy rating on CZR and lifted the target price to $45 from $42.
Caesars’ upward price target revision is a result of the strong performance in its digital division, which appears poised to outperform its $500 million revenue benchmark. This growth is in contrast to ongoing difficulties in other segments of the company. Despite generating $11.3 billion in annual revenue and $3.6 billion in EBITDA, Stifel highlighted that CZR has faced challenges in achieving balanced growth across its Las Vegas Strip resorts, regional casinos, and digital operations.
However, the firm believes the slowdown on the Strip during the summer is likely temporary and sees early signs of recovery in the free independent traveler (FIT) segment.
Stifel showed confidence in Caesars’ regional casinos, expecting profit margins to improve once the company finishes investing in its Total Rewards loyalty program. The firm also mentioned that Caesars is generating more free cash flow and noted that the management believes the stock is undervalued while it’s trading in the $20 range.
Caesars is still mainly focused on reducing its debt. Stifel also mentioned that the company might have a chance to make more money in the future by selling or making use of its digital platform.
Caesars Entertainment, Inc. (NASDAQ:CZR) operates gaming and hospitality properties across the United States, offering casinos, sports betting, iGaming, and hospitality services such as hotels, dining, and entertainment venues.
9. ConocoPhillips (NYSE:COP)
No. of Hedge Funds That Exited the Stock in Q1 2025: 16
ConocoPhillips (NYSE:COP) is one of the top stocks sold by hedge funds. On July 11, RBC Capital trimmed the price target on COP from $115 to $113, while reaffirming an Outperform rating on the shares.
According to RBC, expected earnings and cash flow per share are slightly higher than the company’s own assumptions of $1.30 and $4.5 billion. The firm noted that leverage in Q2 2025 is likely to climb, reflecting working capital pressures, higher capital expenditure, and missing APLNG distributions.
The firm observes that ConocoPhillips is on the verge of a free cash flow transition, driven by a significant reduction in major capital outlays expected in Q3 2025.
Core investor debates now revolve around shareholder payout metrics, planned divestments, the capex-to-cash flow inflection, and the rate of drilling activity in the onshore Lower 48 region.
ConocoPhillips (NYSE:COP) is an energy company that explores, produces, and sells oil, gas, and LNG. It operates in different regions like the United States, Canada, Europe, and Asia, and has both traditional and renewable oil and gas projects.
8. Albertsons Companies, Inc. (NYSE:ACI)
No. of Hedge Funds That Exited the Stock in Q1 2025: 18
Albertsons Companies, Inc. (NYSE:ACI) is one of the top stocks sold by hedge funds. On July 22, UBS upgraded ACI to Buy from Neutral and boosted the price target to $27 from $22.
UBS estimates that Albertsons’ adjusted earnings per share will exceed FactSet’s forecast by approximately 4% for FY2026 and by 8% for FY2027, reflecting a more optimistic earnings outlook from the investment bank.
UBS is of the opinion that the recent drop in Albertsons’ stock does not reflect some big growth opportunities, like more customers shopping at the pharmacy and better digital tools, which could help same-store sales grow 2.5% in 2026, a bit more than what most analysts expect.
The report notes that Albertsons may improve profitability by aligning purchasing strategies and leveraging retail media, with operating margins in 2026 projected to exceed consensus by 10 basis points.
UBS added that Albertsons Companies, Inc. (NYSE:ACI) has revised its fiscal year 2025 guidance downward to prioritize strategic investments and to enhance volume growth within its grocery division. The firm noted that this establishes a sustainable baseline, from which the company can manage share repurchases and regularly deliver earnings results that top market expectations.
Albertsons Companies, Inc. (NYSE:ACI) is an American grocery and pharmacy retailer with a wide range of store brands like Safeway, Vons, and Jewel-Osco.
7. Expedia Group, Inc. (NASDAQ:EXPE)
No. of Hedge Funds That Exited the Stock in Q1 2025: 18
Expedia Group, Inc. (NASDAQ:EXPE) is one of the top stocks sold by hedge funds. On July 23, Cantor Fitzgerald maintained a Neutral rating on EXPE and lifted the price target to $200 from $170.
The research firm expects Expedia’s gross bookings for Q2 2025 to grow by 4% compared to last year, or 3% if foreign exchange effects are ignored. This is better than their earlier forecast of -2% to 4% growth. However, room night growth is expected to slow down by about 2%, reaching 4% year-over-year.
Cantor Fitzgerald expects B2C revenues to rise slightly by 1% year-over-year as consumer demand shows signs of stabilizing. B2B revenues are projected to grow more strongly at 13% year-over-year. The firm also predicts that EBITDA margins will improve by 90 basis points to reach 23%, which is close to the top of its earlier forecast.
The investment firm expects total bookings to grow by 5% year-over-year in Q3 2025, or 3% without the impact of foreign exchange. This is a bit higher than the general market forecast of 3%. Room night growth is also predicted to rise to 5%, up by 1%, primarily because of stronger demand in the B2C segment.
Cantor expects Expedia to stick to its full-year 2025 revenue growth forecast of 2% to 4% compared to last year, helped by steady demand and good exchange rates. The firm also thinks the company will keep its target of growing EBITDA margins by 75 to 100 basis points for the year.
Expedia Group, Inc. (NASDAQ:EXPE) is a global online travel company operating through B2C, B2B, and Trivago segments, offering services like hotel bookings, vacation rentals, and travel tech solutions.
6. Bristol-Myers Squibb Company (NYSE:BMY)
No. of Hedge Funds That Exited the Stock in Q1 2025: 19
Bristol-Myers Squibb Company (NYSE:BMY) is one of the top stocks sold by hedge funds. On July 28, Bristol Myers, in partnership with private equity firm Bain Capital, is poised to launch a standalone entity focused on advancing immunology drug development, with a $300 million financing commitment from Bain.
The newly established company will focus on advancing five investigational therapeutics licensed from BMY, including a late-stage lupus candidate and a mid-stage psoriasis drug that has shown promising efficacy in clinical evaluations.
Retaining nearly 20% ownership, Bristol Myers will benefit from royalties and milestone payments depending on the success of the therapeutics. The joint effort allows the pharmaceutical firm to concentrate on developing immune system-reset therapies in immunology, ensuring that promising assets continue to develop.
Julie Rozenblyum, the senior vice president of business development at BMY, commented:
“These assets have significant potential, and we are confident that this new company will drive their development to ensure greater impact for patients,”
Daniel Lynch, an experienced pharma executive, will serve as executive chairman and interim CEO of the new company. Robert Plenge, Bristol Myers’ chief research officer, is expected to join the board along with Bain Capital partners. Moreover, the Canada Pension Plan Investment Board also took part in the funding series.
Bristol-Myers Squibb Company (NYSE:BMY) is a global biopharmaceutical company specializing in the invention, development, and commercialization of therapies for oncology, immunology, cardiovascular disease, and neuroscience.
5. Uber Technologies, Inc. (NYSE:UBER)
No. of Hedge Funds That Exited the Stock in Q1 2025: 21
Uber Technologies, Inc. (NYSE:UBER) is one of the top stocks sold by hedge funds. On July 29, WeRide Inc. (NASDAQ:WRD) and Uber announced the strategic expansion of their autonomous taxi service to include Al Reem and Al Maryah Islands in Abu Dhabi, in partnership with the Integrated Transport Centre.
The expansion strategically covers nearly half of Abu Dhabi’s primary urban zones, including Al Reem, Al Maryah, Yas, and Saadiyat Islands, as well as major highway routes to Zayed International Airport. The companies estimate that this extension will drive a twofold increase in ride volumes, substantially boosting the utilization of their autonomous taxi service.
Since its launch in Abu Dhabi in December 2024, the robotaxi fleet has undergone a threefold expansion. WeRide and Uber intend to further scale their fleet to add hundreds of autonomous vehicles and plan to provide their services to Khalifa City, Masdar City, and additional central urban areas later in 2025.
Passengers in the new zones can access WeRide robotaxis via the Uber and TXAI mobile apps. The companies maintain the largest robotaxi service in the Middle East.
4. Salesforce, Inc. (NYSE:CRM)
No. of Hedge Funds That Exited the Stock in Q1 2025: 22
Salesforce, Inc. (NYSE:CRM) is one of the top stocks sold by hedge funds. On July 31, Salesforce announced an agreement to purchase Bluebirds, a leading AI-based prospecting platform that helps sales teams find and connect with valuable leads using smart data and lead insights.
Bluebirds’ smart tech makes it more convenient for sales teams to find and reach the right leads quickly, helping them save time and work efficiently. Once the deal is done, Salesforce plans to add these tools to Sales Cloud and Agentforce so users can automate early sales tasks and get more done.
According to Kris Billmaier, EVP and GM of Sales Cloud at Salesforce:
“Every sales team wants to spend less time on busywork and more time closing deals. Bluebirds’ technology will help us deliver smarter, AI-powered prospecting that makes sellers more productive from day one, right inside the Salesforce platform.”
The Bluebirds team has expertise in sales data, artificial intelligence, and agentic systems, cultivated through years of experience at prominent technology companies. Their contributions are expected to advance Salesforce’s AI roadmap and empower clients to identify and capitalize on new opportunities through intelligent, automated sales processes.
The acquisition is targeted for completion in Salesforce’s fiscal third quarter of 2026, subject to the usual closing conditions.
3. Arthur J. Gallagher & Co. (NYSE:AJG)
No. of Hedge Funds That Exited the Stock in Q1 2025: 25
Arthur J. Gallagher & Co. (NYSE:AJG) is one of the top stocks sold by hedge funds. On August 4, AJG confirmed the acquisition of Dion Leadership, Inc. of Novi, Michigan. The financial terms were not shared.
Dion Leadership provides a range of services, including leadership coaching, management training, talent assessment, and organizational development consulting, to clients across diverse sectors. Steve Dion and his team will continue working from their existing office, now reporting to Steve Coco, Global Managing Director of Talent Consulting at Gallagher.
J. Patrick Gallagher, Jr., Chairman and CEO said in a statement:
“Dion Leadership’s strong client relationships and expertise in leadership and organizational development solutions will expand our capabilities in the executive consulting space. I am delighted to welcome Steve and his associates to Gallagher.”
Arthur J. Gallagher & Co. (NYSE:AJG) is a global provider of insurance and reinsurance brokerage, consulting, and risk management solutions.
2. Marvell Technology, Inc. (NASDAQ:MRVL)
No. of Hedge Funds That Exited the Stock in Q1 2025: 32
Marvell Technology, Inc. (NASDAQ:MRVL) is one of the top stocks sold by hedge funds. On July 30, MRVL stock rose 10% following Fubon Research’s emphasis on the company’s strong revenue potential tied to Microsoft’s AI chip developments.
Fubon Research says Microsoft has upgraded the Maia300 chip, which Marvell is working on, from 3nm with HBM3E to a newer 2nm design with HBM4. This change has pushed production from early 2026 to late 2026, but analysts still see it as a big opportunity for Marvell.
The Maia300 chip is set to start production in late 2026 with about 300,000 to 400,000 units, increasing to 1.2 to 1.5 million units in 2027. At an average price of $8,000 per chip, Fubon expects the project could bring in around $2.4 billion in 2026 and $10 to $12 billion in 2027.
Analysts noted that Microsoft seems to have more confidence in Marvell’s Maia300 than in its own Maia200 chip. This change comes as Microsoft is reportedly struggling with its in-house chip design, and Fubon believes the company will likely rely more on Marvell for its current chips. The research also pointed out that Microsoft has increased the 2026 production of its Maia200 chip from 40,000-60,000 units to 150,000-200,000 units to make up for the delayed launch of the Maia300.
Fubon’s report added that Microsoft might charge more than Amazon Web Services (AWS), as the Maia300 has an average price of $8,000, much higher than AWS Trainium 2’s $1,500, even though both have similar margins of 55-60%.
Marvell Technology, Inc. (NASDAQ:MRVL) delivers comprehensive semiconductor solutions across the data infrastructure spectrum, with a portfolio including system-on-a-chip architectures, Ethernet solutions, storage controllers, interconnect products, and different host system interfaces.
1. Microsoft Corporation (NASDAQ:MSFT)
No. of Hedge Funds That Exited the Stock in Q1 2025: 34
Microsoft Corporation (NASDAQ:MSFT) is one of the top stocks sold by hedge funds. Brazil’s antitrust agency CADE said on August 1 that it has started an investigation into Microsoft after Norwegian browser maker Opera Limited (NASDAQ:OPRA) raised concerns about Microsoft’s Edge.
Opera claimed in its complaint that Microsoft sets Edge as the default browser on Windows devices, making it harder for other browsers to compete fairly.
As of June, Opera controlled 6.78% of Brazil’s desktop browser market, trailing Edge’s 11.52% and the 75% held by Google Chrome.
CADE commented that it has started an administrative inquiry and gave Microsoft until August 15 to reply to Opera’s claims about Windows licenses, Microsoft 365, and its Jumpstart program.
The Jumpstart program allows Microsoft customers to create AI agents that handle simple tasks, which could help the company earn money from its substantial AI investments. Other large tech firms offer similar tools.
Opera has been complaining about Microsoft since December 2007, when it reported that Internet Explorer was bundled with Windows to the European Commission, which resulted in a €561 million ($640 million) fine for the American tech titan.
While we acknowledge the potential of MSFT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MSFT and that has 100x upside potential, check out our report about this cheapest AI stock.
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