From The Economic Times · · 1m 20s
Hedge Funds Cut Tech Exposure Fastest in a Decade
Hedge funds slashed tech stock bets at fastest pace in a decade as AI trade weakens.
In brief
Hedge funds slashed tech stock bets at fastest pace in a decade as AI trade weakens. Hedge funds reduced tech exposure by 23.5% of their global Prime book amid AI trade selloff. Originally reported by The Economic Times.
Hedge Funds Retreat from Tech
Hedge funds pulled back from technology stocks at their fastest pace in at least a decade last week.
AI Trade Weakens
The AI trade lost momentum, with technology stocks bearing the brunt of the broader market selloff.
Nasdaq 100 Drops 5.5%
The Nasdaq 100 fell 5.5% last week, marking its steepest drop since April 2025.
Tech Bears Selloff Brunt
Technology was the worst-performing group in the MSCI World Index during the five sessions covered by Goldman’s data.
Hedge Funds Reduce Risk
Hedge funds cut their technology positions by the largest proportion in Goldman’s data going back to 2016.
Net Allocation Stays High
Net allocation to the sector still stood at 23.5% of the global Prime book, putting it in the 90th percentile of the past five years.
Hedge Funds Shift to Caution
Gross trading activity fell at its fastest pace in nearly three months, while net leverage declined to a one-year low of 48.6%.
Here's the gist
Hedge funds reduced tech exposure by 23.5% of their global Prime book amid AI trade selloff.
