Hedge Funds Sell Semiconductor Stocks to 10-Year High Short Levels Amid Tech Rally

According to Goldman Sachs Prime Services, hedge fund clients are selling semiconductor and equipment stocks over the past month despite technology shares climbing to record highs. The semiconductors and related equipment subsector is the most net-sold U.S. subsector over this period and is modestly net sold on a year-to-date basis.

Broader hedging activity is also underway, with short exposure to U.S. index and ETF macro products rising to a 10-year high. However, gross leverage among Goldman Sachs Prime Services clients reached record levels while net leverage remained flat, signaling restraint rather than market euphoria, according to Vincent Lin, co-head of Prime Insights and Analytics.