Goldman Sachs: Hedge funds have sold AI stocks for five consecutive days, wiping out all net buying accumulated since the start of 2025.

Goldman Sachs’ prime brokerage data shows that hedge funds have recorded net selling of global AI-related stocks for five consecutive trading days—erasing all their net buying in the sector since the start of 2025, according to Coin Bureau. Over the past two weeks, hedge funds sold approximately $20 billion worth of tech stocks, with reductions in existing long positions accounting for the bulk of the selling—3.5 times larger than new AI short bets. On October 22, the basket of top hedge fund holdings tracked by Goldman Sachs plunged 4.2% in a single day—the worst one-day performance since 2011. Meanwhile, Steno Research, citing Morgan Stanley data, notes that hedge funds’ overall equity exposure contracted by roughly 7.8%, marking the largest decline since the firm began tracking this metric in 2016.