# 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.
- Title: Hedge Funds Cut Tech Exposure Fastest in a Decade | Shortify
- Summary: 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…
- Keywords: hedge funds, tech stocks, ai trade, selloff, nasdaq 100, goldman sachs, semiconductors, money, business, Hedge, Funds, Cut
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/us-stocks/wall-street-guide/hedge-funds-retreat-from-tech-at-fastest-pace-in-a-decade-as-ai-trade-weakens/articleshow/135055531.cms
- Published: 2026-10-19T19:16:00+00:00
- Read time: 1 min
- Topics: hedge funds, tech stocks, ai trade, selloff, nasdaq 100, goldman sachs, semiconductors, money, business
## 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%.
## Key takeaway

Hedge funds reduced tech exposure by 23.5% of their global Prime book amid AI trade selloff.