Goldman Sachs: Hedge funds sell U.S. tech stocks at fastest pace in a year

Odaily Planet Daily News: Goldman Sachs' prime brokerage business department reported that as of the week of July 25, hedge funds reduced their risk exposure to US technology, media and telecommunications stocks at the fastest pace since July 2024, and the selling speed of long positions exceeded short covering. Data shows that most sub-sectors of TMT have seen risk reduction, led by semiconductors and semiconductor equipment, software, information technology services and media stocks. The technology sector's earnings season is entering its peak, with companies such as Amazon, Apple, Meta Platforms and Microsoft scheduled to announce results this week. "Net exposure to the semiconductor and semiconductor equipment sector as a proportion of total exposure to US prime brokerage clients is still close to a five-year high, at the 94th percentile; while net exposure to the software and services sector is close to a five-year low, at the 2nd percentile," Vincent Lin, co-head of Goldman Sachs' prime brokerage insights and analysis, wrote in the report.