Hedge funds cut tech exposure at fastest pace since 2016

Hedge funds reduced technology positions by the largest proportion in Goldman Sachs’ records dating to 2016 during the five trading sessions through October 15, as the global artificial-intelligence trade weakened. Economic Times Markets, citing Bloomberg’s reporting on Goldman’s prime-desk data, said technology shares were at the centre of the market selloff.

The Nasdaq 100 dropped 5.5% last week, its sharpest weekly decline since April 2025. Technology was also the weakest sector in the MSCI World Index over the five sessions tracked by Goldman, while semiconductor positions saw the largest reduction in dollar terms. Selling spread across global equities, with net sales reaching a level equivalent to two standard deviations relative to flows over the preceding year.

The retreat nevertheless left substantial technology exposure: the sector’s net allocation remained at 23.5% of Goldman’s global Prime book, in the 90th percentile of its five-year history. Hedge funds’ net leverage—the extent to which long positions exceed short positions—fell to a one-year low of 48.6%, pointing to reduced risk-taking rather than a complete withdrawal from technology.