Key Takeaways
- • Goldman Sachs prime brokerage data shows hedge fund clients net sold global AI stocks for five consecutive sessions, erasing all net AI stock purchases made since the start of 2025.
- • Hedge funds sold approximately $20 billion of technology stocks over a two-week period, according to figures cited by Coin Bureau.
- • Selling of existing holdings ran at 3.5 times the pace of new bearish positions against AI stocks, indicating liquidation rather than short-driven de-risking.
- • Goldman's basket of hedge fund favorite stocks fell 4.2% on October 22, its worst daily performance since 2011.
- • Morgan Stanley data cited by Steno Research shows hedge funds cut about 7.8% of total stock exposure, the largest reduction in that dataset since 2016.
Summary
Hedge funds have reversed all of their net buying of artificial intelligence stocks made since the beginning of 2025 within five trading sessions, according to data from Goldman Sachs' prime brokerage desk. The bank recorded five consecutive sessions of net selling in global AI stocks by hedge fund clients, a sharp shift in institutional positioning toward AI-related equities.
The selling extended beyond AI-focused names. Hedge funds disposed of roughly $20 billion in technology stocks over two weeks, according to figures cited by Coin Bureau. Goldman's data indicated that sales of stocks already held ran at 3.5 times the pace of new bearish positions against AI stocks, suggesting the reduction in exposure was driven mainly by liquidating existing holdings rather than by short selling.
The repositioning coincided with a substantial decline in a basket of hedge fund favorite stocks tracked by Goldman Sachs. The basket fell 4.2% on October 22, its worst daily performance since 2011.
The reduction was not confined to technology. Morgan Stanley data cited by Steno Research shows hedge funds cut approximately 7.8% of their total stock exposure, the largest reduction recorded in Morgan Stanley's series, which dates to 2016. Taken together, the Goldman and Morgan Stanley figures point to a broad retreat from equity positions among hedge funds.
The selling extended beyond AI-focused names. Hedge funds disposed of roughly $20 billion in technology stocks over two weeks, according to figures cited by Coin Bureau. Goldman's data indicated that sales of stocks already held ran at 3.5 times the pace of new bearish positions against AI stocks, suggesting the reduction in exposure was driven mainly by liquidating existing holdings rather than by short selling.
The repositioning coincided with a substantial decline in a basket of hedge fund favorite stocks tracked by Goldman Sachs. The basket fell 4.2% on October 22, its worst daily performance since 2011.
The reduction was not confined to technology. Morgan Stanley data cited by Steno Research shows hedge funds cut approximately 7.8% of their total stock exposure, the largest reduction recorded in Morgan Stanley's series, which dates to 2016. Taken together, the Goldman and Morgan Stanley figures point to a broad retreat from equity positions among hedge funds.
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