According to The Kobeissi Letter, hedge funds have executed the second-largest sell-off of global technology stocks in five years, as per Goldman Sachs data. This significant activity primarily involved US tech stocks, which constituted 75% of the net selling. This sell-off was only surpassed by the early August 2024 sell-off, indicating a notable shift in hedge fund investment strategies.

According to The Kobeissi Letter, hedge funds have been aggressively selling US tech stocks for the first time in months. Last week, institutional investors reduced their tech stock exposure at the fastest pace since July 2024, with the 'Magnificent 7' exposure reaching a two-year low.