Goldman Sachs prime brokerage data: Hedge funds sell U.S. technology stocks at the fastest pace in a year

Hedge funds reduced risk exposure to US tech, media and telecoms stocks in the week to July 25 at the fastest pace since July 2024, with long positions selling faster than short covering, according to a report by Goldman Sachs' prime brokerage arm. The data showed risk reduction in most sub-sectors of TMT, led by semiconductors and semiconductor equipment, software, information technology services and media stocks. Tech earnings season is entering its peak, with companies such as Amazon, Apple, Meta Platforms and Microsoft scheduled to report results this week. " Net exposure to semiconductors and semiconductor devices as a percentage of total U.S. prime brokerage client exposure remains near a five-year high at the 94th percentile, while net exposure to software and services remains near a five-year low at the 2nd percentile, "Vincent Lin, co-head of prime brokerage insights and analysis at Goldman Sachs, wrote in a report.