Goldman Sachs' main brokerage business data: Hedge funds sell US tech stocks at the fastest pace in a year

According to a report from Goldman Sachs' prime brokerage division, as of the week ending July 25th, hedge funds have reduced their risk exposure to US technology, media, and telecommunications stocks at the fastest pace since July 2024, with long positions selling faster than short positions being filled. Data shows that most sub industries of TMT have experienced risk reduction, led by semiconductor and semiconductor equipment, software, information technology services, and media stocks. The technology sector's earnings season is entering its peak, with companies such as Amazon, Apple, Meta Platforms, and Microsoft scheduled to announce their results this week. The net exposure of the semiconductor and semiconductor equipment sector as a percentage of the total exposure of US prime brokerage clients is still close to a five-year high, at the 94th percentile, while the net exposure of the software and services sector is close to a five-year low, at the 2nd percentile, "wrote Vincent Lin, Co Head of Insights and Analytics at Goldman Sachs in the report.