Technology remained a major holding for Goldman Sachs hedge fund clients after their sharpest proportional cut to the sector since 2016 in the five sessions through Oct. 15, Bloomberg News reported.
In Goldman’s global prime brokerage book, the net allocation to technology was 23.5% after the pullback, Bloomberg reported, citing a bank note. That level was at the 90th percentile of readings over the past five years. The figure describes Goldman’s clients, not hedge funds across the industry.
Bloomberg reported that semiconductor shares accounted for the largest dollar amount sold among technology groups. Net sales across global equities were equivalent to two standard deviations of flows over the preceding year. The funds’ net leverage fell to 48.6%, its lowest level in a year.
Goldman says its prime brokerage business can observe client trades and positions as they settle in its accounts. During a separate AI-stock selloff in July, Goldman Sachs co-head of Prime Insights and Analytics Vincent Lin linked reductions in technology holdings at that time to crowded AI positions and portfolio risk management.
Nasdaq data show the Nasdaq-100 moved from 30,883.15 at the Oct. 9 close to 29,187.55 on Oct. 16, a decline of 5.49%. The index comparison includes one trading session after Goldman’s reported window ended, so the two measures cover different periods.
Separately, earlier hedge fund selling in global AI shares had canceled net purchases in that segment since early 2025. That measure tracked cumulative trading in AI shares; Goldman’s latest figure describes the net technology allocation in one bank’s client book.
In July, Meta Platforms Inc. projected 2026 capital expenditures of $130 billion to $145 billion, including principal payments on finance leases. Meta will release third-quarter results after the U.S. market closes Wednesday, Oct. 21, and hold a call at 4:30 p.m. ET.
