US hedge funds cut exposure to technology hardware stocks for a fourth consecutive week as semiconductor shares retreated and investors positioned ahead of the upcoming earnings season, according to a Goldman Sachs prime brokerage note.
A Reuters report said the most net-sold US equity sector during the week to 3 July, with semiconductor and hardware stocks leading the selling. The move coincided with a 4.2% weekly decline in the Philadelphia Semiconductor Index (SOX), reflecting increased profit-taking and concerns over AI-related spending.
Goldman said hedge funds were net sellers of individual US stocks for a third straight week, reducing exposure across technology, industrial and consumer discretionary sectors. In contrast, managers added to index and ETF positions, as well as commercial services, consumer staples, real estate and energy stocks.
The latest positioning suggests hedge funds are becoming more selective within equities as elevated valuations and uncertainty around AI investment returns weigh on technology shares ahead of corporate earnings.
