Goldman Sachs Prime Brokerage Data: Hedge Funds Sell US Tech Stocks at Fastest Pace in a Year

According to a report from Goldman Sachs’ prime brokerage division, as of the week ending July 25, hedge funds reduced their exposure to U.S. technology, media, and telecommunications (TMT) stocks at the fastest pace since July 2024, with long positions being sold off more rapidly than short positions were covered. The data shows that most TMT sub-sectors saw risk reduction, led by semiconductors and semiconductor equipment, software, information technology services, and media stocks. The tech sector is entering the peak of earnings season, with companies such as Amazon, Apple, Meta Platforms, and Microsoft scheduled to release their results this week. “The net exposure of the semiconductor and semiconductor equipment sector as a proportion of total U.S. prime brokerage client exposure remains near a five-year high, at the 94th percentile, while the net exposure of the software and services sector is near a five-year low, at the 2nd percentile,” wrote Vincent Lin, Co-Head of Prime Insights and Analytics at Goldman Sachs, in the report.