Global hedge funds exited both long and short bets on technology stocks at the fastest weekly pace seen in seven months last week, according to a report by Reuters citing data from Goldman Sachs' prime brokerage division.

Between Friday, 10 November and Thursday, 16 November, traders cut their long and short positions on semi-conductor makers and communications equipment providers, while also exiting long positions on software companies. The sell-off came just as S&P 500 stock valuations climbed to a two-month high, well above a long-term average.

The report quotes Florian Ielpo, Head of Macro at Lombard Odier Investment Managers, as saying the the decline in hedge fund interest in tech stocks might signal the end of the "performance concentration" seen in recent years.

"Equities valuations are expensive but it's hard to say by how much. To surpass this level, we need earnings growth, and a lot of that is priced in already given analysts' expectations for next year," he said.