Hedge Funds Dump US Tech Stocks at Record Pace
Hedge funds have sold information technology stocks in six of the last eight weeks, pushing total eight-week sales to the highest in at least a decade. Last week alone, tech was the most-sold US sector, and tech exposure as a share of total market exposure fell to its lowest since February 2026.
Hedge funds are rapidly reducing their exposure to US technology stocks, with the pace of selling reaching a record not seen in at least 10 years. According to data from The Kobeissi Letter, funds have offloaded information technology shares in six of the past eight weeks, making the trailing eight-week sales the largest on record.
Last week marked the most aggressive selling of the tech sector among hedge funds, further dragging down tech's weighting in overall portfolios. As a result, the sector's share of total market exposure has dropped to its lowest level since February 2026. If the current trend continues, analysts warn that tech exposure could fall to a five-year low as early as next week.
The shift suggests a broader risk-off stance, with hedge funds moving to the sidelines amid uncertainty in growth stocks.
Source: The Kobeissi Letter