Global hedge funds snapped up US technology stocks, including semiconductors and hardware, at their fastest rate in five months last week, as the third-quarter earnings season kicks off, according to a report by Goldman Sachs.
The report cites a note from Goldman Sachs' prime brokerage division, which provides services to hedge funds and monitors their trading activity, as revealing that fund managers have been net buyers of US information technology stocks for the third consecutive week. Hedge funds covered short positions while increasing their long position.
The only tech subsector that hedge funds offloaded was software.
Outside of the US, conflicting reports from major semiconductor players moved markets in different directions. Taiwan Semiconductor Manufacturing (2330.TW) and chipmaking equipment supplier ASML Holding (ASML.AS) reported diverging outlooks, while investors eagerly await earnings from key players like Advanced Micro Devices (AMD.O) and Nvidia (NVDA.O) to gauge trends in the sector.
Overall, US information technology stocks now account for 16.1% of hedge fund exposure, a decline from the roughly 22% seen earlier this year.
In contrast, hedge funds have been selling off stocks in US consumer sectors—such as food products, beverages, and restaurants—for the fifth consecutive week, according to Goldman Sachs.
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