Hedge funds retreated from tech stocks at the fastest clip in at least a decade, according to Goldman Sachs Inc.’s prime desk.

In the five trading sessions through Oct. 15, hedge funds reduced their positions on tech stocks by the largest proportion in Goldman’s data going back to 2016. At the same time, gross trading activity fell at the fastest pace in nearly three months, according to a note by Goldman’s global banking and markets group.

The hedge funds sold into a rout in global technology shares. The Nasdaq 100 fell 5.5% for its worst drop since April 2025 last week as the AI trade unwound globally, and tech was the worst-performing group in the MSCI World Index over the five trading sessions Goldman Sachs’s data captures.

Global equities were net sold to the tune of two standard deviations against the past year’s flows, according to the Goldman Sachs data. Information technology led by a wide margin, with the largest de-grossing in two months, while semiconductors took the biggest dollar hit.

Still, the funds continue to hold big tech books. Net allocation to the sector, which is 23.5% of the global Prime book, remains in the 90th percentile versus the past five years, the note said. However, they have become more cautious. Their net leverage, a measure of how much their long positions outweigh their shorts, fell to a one-year low of 48.6%.

Written by: Jan-Patrick Barnert @Bloomberg

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