Hedge funds retreat from tech stocks at fastest pace in a decade, Goldman Sachs says

Hedge funds have been heading for the exits on tech, and they are not walking. According to Goldman Sachs prime brokerage data, funds cut their technology exposure at the fastest rate in at least ten years. The selling ran from October 10 to October 15, 2026. Goldman’s records go back to 2016, and no stretch in that dataset saw a larger proportional cut to tech positions. What the Goldman data shows The selling was not spread evenly across the sector. Funds focused their exits on AI-linked names, with semiconductors taking the biggest hit in dollar terms. The scale was striking. Goldman’s data indicates that global AI stocks reversed every bit of net buying hedge funds had done since early 2025. The broader market felt it. The Nasdaq 100 fell 5.5% in the week ending October 15, 2026, its worst weekly showing since April 2025. Global tech shares slid sharply alongside it. Goldman characterized the activity primarily as long liquidation, not a wave of fresh short bets. A short seller is betting a stock will fall. A fund liquidating longs is simply getting out of positions it already held. The retreat also lined up with a wider drop in gross trading activity. Gross exposure measures h...