Goldman Sachs: Hedge Funds Are Offloading Tech Stocks at the Fastest Pace Since 2016, With Semiconductors Facing Concentrated Sell-Offs

Goldman Sachs prime brokerage data shows that over the five trading days ending last Thursday, the proportion of net selling in the tech sector by hedge funds relative to their total positions hit the highest level since tracking began in 2016. The semiconductor and semiconductor equipment sectors accounted for 57% of the total net selling value of U.S. tech stocks. Last week, the Nasdaq 100 Index fell 5.5%, while the Philadelphia Semiconductor Index dropped approximately 11.4%. Following the position reduction, tech stocks still represent 23.5% of the net allocation in Goldman Sachs' global prime brokerage book, placing it at the 90th percentile over the past five years. According to additional Goldman Sachs statistics, leveraged equity ETFs recorded nearly $9.5 billion in net inflows from October 12 to 16, a new single-week record, with SOXL attracting around $7 billion of that total.

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