Goldman Says Hedge Funds Sell US Tech Stocks at Record Pace

Hedge funds dumped US tech stocks at a record pace over the past two months, according to Goldman Sachs Group's Prime Services desk. The cohort sold the sector in six of the past eight weeks, marking the fastest withdrawal Goldman has tracked through its prime brokerage data.

The selling pressure comes as the Nasdaq 100—tracked by QQQ—has faced headwinds from persistent inflation concerns and higher-for-longer rate expectations. Tech stocks, with their sensitivity to discount rates, typically underperform when Treasury yields climb and the Fed holds rates elevated. Goldman's Prime Services desk aggregates trading activity from thousands of hedge funds, making the data a reliable barometer of institutional sentiment shifts.

The record pace of exits suggests hedge funds are rotating out of growth and into defensive sectors or cash, recalibrating portfolios ahead of key macro catalysts. The two-month window captures a sharp reversal from earlier positioning, when funds had been overweight mega-cap tech through much of 2023 and early 2024.