Goldman Sachs prime brokerage data: Hedge funds selling US tech stocks at fastest pace in a year.

Goldman Sachs' main brokerage business department report shows that as of the week ending July 25, hedge funds have been reducing their risk exposure to US technology, media, and telecommunications stocks at the fastest pace since July 2024, with the selling speed of long positions exceeding short covering. Data shows that most sub-industries in TMT have reduced their risks, with semiconductor and semiconductor equipment, software, information technology services, and media stocks leading the way. The technology sector's earnings season is at its peak, with companies like Amazon, Apple, Meta Platforms Inc., and Microsoft scheduled to report results this week. "The net exposure of the semiconductor and semiconductor equipment sector as a percentage of total exposure of US main 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 Analysis at Goldman Sachs' main brokerage, in the report.