Hedge funds cut tech stocks exposure to 23.5% by mid-October
Business
Hedge funds are backing away from tech stocks faster than they have in years, mainly because the hype around AI is cooling off and global markets are feeling shaky.
As of mid-October, tech now makes up just 23.5% of their investments, a big drop that shows even the pros are playing it safe.
Nasdaq-100 falls 5.5% as tech weakens
Last week, the Nasdaq-100 took a 5.5% hit (its worst since April 2025), and tech was the weakest sector globally.
Hedge funds are not ditching tech entirely, but they are trading less and cutting risk (net leverage is at its lowest in a year) as everyone waits to see where AI and the markets go next.