Analysis: Hedge Funds Slash Tech Stock Holdings in Frenzied Selling, Last Week's Net Sales Near a Decade Record

Odaily: Amid rising uncertainty over the outlook for data center construction following the U.S. midterm elections, hedge funds are selling off global tech stocks at a pace close to historical records, and the market has begun to reassess the AI trade thesis. Last week, tech stocks became the most heavily net-sold sector globally and in the U.S., with the net selling ratio roughly in line with the highest level recorded by Goldman Sachs Group since 2016.

Positioning data also shows a marked contraction in risk appetite. The gross leverage of US fundamental long-short funds fell 8.7 percentage points in a single week to 207.5%, the largest weekly decline since March 2020; net leverage dropped 3.7 percentage points to 43.3%, the largest weekly decline since April 2025. (Bloomberg)