Hedge Funds Cut Semiconductor and Momentum Stock Positions by ~5%, Largest Reduction on Record: UBS

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According to UBS commodity brokerage data, hedge funds have reduced their long positions in momentum and semiconductor stocks by approximately 5% of total market value recently, marking one of the largest reductions on record. Net holdings in semiconductor and software stocks have fallen back to April levels. UBS believes the selloff in momentum stocks is nearing its end and expects the decline to reach bottom by end of July, recommending investors gradually rebuild positions in AI and semiconductor stocks.
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