Hedge Funds Cut Tech Holdings At Fastest Rate In A Decade

Hedge funds reduced technology positions at the largest rate in Goldman Sachs’ global prime brokerage data since records began in 2016 during the five trading sessions through Oct. 15. Gross trading activity fell at its fastest pace in nearly three months.

Technology had the largest decline in hedge fund holdings among sectors. Semiconductor stocks recorded the biggest dollar outflows, while technology posted its largest reduction in gross exposure in two months.

The selling followed a sharp reversal in AI-linked stocks. The Nasdaq 100 fell 5.5% during the week, its steepest weekly decline since April 2025. Technology was the worst-performing sector in the MSCI World Index.

Global equities were net sold at a rate equal to two standard deviations of the average flows recorded during the previous year, according to Goldman’s data.

Hedge fund exposure to technology remained high. The sector represented 23.5% of Goldman’s global prime brokerage book, while net technology allocations remained in the 90th percentile of their range over the previous five years.

Hedge funds’ net leverage fell to 48.6%, the lowest level in a year. The decline reflected fewer long positions relative to short positions.