Goldman Sachs: Hedge funds cut tech stocks at fastest pace since 2016, semiconductors hit by concentrated selling

October 20 - According to Jinshi Data, Goldman Sachs prime brokerage data shows that in the five trading sessions through last Thursday, hedge funds' net selling of the tech sector as a share of holdings hit the highest level since the data began being tracked in 2016. The semiconductor and semiconductor equipment sector accounted for 57% of net selling in U.S. tech stocks. Last week, the Nasdaq 100 fell 5.5%, and the Philadelphia Semiconductor Index fell about 11.4%. After the reduction, tech stocks still accounted for 23.5% of net allocation on Goldman Sachs' global prime brokerage book, at the 90th percentile of the past five years. Goldman Sachs also reported that leveraged equity ETFs saw net inflows of nearly $9.5 billion from October 12 to 16, a weekly record, with SOXL accounting for about $7 billion of inflows.