Hedge funds execute record technology share sell-off

Global hedge funds using Goldman Sachs’s prime brokerage services executed the largest percentage reduction in technology holdings since 2016. The sell-off occurred over a five-day trading period ending mid-October, characterized by aggressive profit-taking rather than short-selling.

Information technology led the net selling, with semiconductor stocks accounting for the largest dollar reduction. Despite this rapid liquidation, technology remained a dominant sector in professional portfolios, representing 23.5% of total global client assets—a level in the 90th percentile of the past five years.

During this period, the Nasdaq 100 declined by 5.5%. Additionally, the aggregate net leverage ratio among surveyed funds fell to 48.6%, marking a one-year low. While clients experienced a weekly loss of 2.9% through October 15, they remained up 14.3% year-to-date.