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.
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