Hedge Funds
Hedge funds dumped tech at the fastest pace in a decade, Goldman data shows
Prime brokerage figures show managers cutting risk hard during the five sessions to October 15.
HedgeWeekly News Desk ·
Hedge funds sold technology stocks at the fastest rate in at least ten years during the five trading sessions to October 15, according to Goldman Sachs prime brokerage data reported on Monday. Semiconductors accounted for the largest dollar losses, and information technology saw the biggest cut in gross positions in two months.
The selling coincided with a 5.5% drop in the Nasdaq 100, its worst week since April 2025. Global fundamental long-short equity funds lost 2.9% over the week and finished down every day, though the strategy is still up 14.3% for the year. Asia-focused managers were hit hardest, losing 6.8% in the first half of October after South Korea's KOSPI fell 8% in a single session.
Managers are now running leaner books. Net leverage dropped to a one-year low of 48.6%, and gross trading activity fell at its fastest pace in nearly three months. Even so, tech still makes up 23.5% of net exposure in Goldman's global prime book, which sits in the 90th percentile of the past five years. That leaves room for further de-risking if AI spending doubts persist.