Key Takeaways
- • Goldman Sachs prime brokerage data shows hedge funds sold AI stocks for five consecutive days in October, erasing every net AI purchase they had made since the start of 2025.
- • Morgan Stanley reports that hedge funds have cut more than 8% of their total equity positions since June, the largest pullback in the period cited.
- • The reversal indicates a broad de-risking in AI-linked equity exposure by hedge funds, a development relevant to managers and allocators tracking positioning in the sector.
Summary
Hedge funds sold AI stocks for five straight days in October, according to Goldman Sachs prime brokerage data. The selling wiped out all net AI stock purchases that hedge funds had made since the beginning of 2025, reversing the buying that had built up over that period.
Morgan Stanley's analysis points to a wider reduction in risk. The bank says hedge funds have cut more than 8% of their total equity positions since June, the largest pullback over that stretch. Taken together, the prime brokerage flows and Morgan Stanley's position data suggest managers are reducing exposure to AI-related equities across their books.
Morgan Stanley's analysis points to a wider reduction in risk. The bank says hedge funds have cut more than 8% of their total equity positions since June, the largest pullback over that stretch. Taken together, the prime brokerage flows and Morgan Stanley's position data suggest managers are reducing exposure to AI-related equities across their books.
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