Hedge funds pile into US semiconductor stocks at fastest pace in 3.5 years
Hedge funds bought the most US semiconductor stocks last week in at least 3.5 years, following two consecutive weeks of heavy selling. The sector now accounts for 10% of total hedge fund exposure, double the level from a year ago.
Hedge funds increased their exposure to US semiconductor stocks last week at the fastest pace in at least three and a half years. The buying spree came after two consecutive weekly selloffs, which were the largest since June 2024.
Semiconductor stocks now represent 10% of total hedge fund exposure, a share that is twice as high as the same period last year. However, this remains below the peak of 14% recorded in May.
The positioning suggests that hedge funds are betting the recent selloff in semiconductors has run its course.
Source: The Kobeissi Letter