Hedge Funds
Hedge funds have unwound their AI stock buying since 2025, Goldman prime data shows
Net sales of tech approached the July unwind as managers cut longs rather than press new shorts, though tech still weighs heavily in books.
HedgeWeekly Hedge Fund Desk ·
Hedge funds have reversed all of their net purchases of global AI-linked stocks made since the start of 2025, and did so within five trading sessions, according to Goldman Sachs prime brokerage data reported by Hedgeweek on Monday.
Goldman's desk logged roughly $20bn of tech stock selling over two weeks, close to the $23bn recorded during the July unwind. Managers were mostly liquidating existing long positions rather than adding new shorts, and the Nasdaq 100 fell 5.5% in a week, its biggest weekly drop since April 2025.
Even after the cuts, technology still made up 23.5% of Goldman's prime book, a level in the top decile of the past five years. Hedgeweek's account also described a broad reduction in risk appetite rather than a wholesale exit from the AI theme, with attention shifting to the profitability of infrastructure spending.
For allocators, the data points to crowded tech exposure being de-grossed at speed, with equity long/short and systematic books exposed to further moves if selling resumes. Remaining concentration suggests the adjustment may not be complete.