Institutional investors are cashing OUT of tech: Hedge funds’ gross exposure to tech as a % of total US exposure has declined ~ 2 percentage points over the last two months, to 16.5%, the lowest 2020. This is even below the levels recorded during the 2022 bear market, according to Goldman Sachs. Meanwhile, hedge funds' net selling of US tech stocks has hit the second-highest level in 5 years. Selling was particularly focused on Semiconductor, Software, and Tech Hardware subsectors. Hedge funds are reducing exposure to tech.