PremiumShort Squeeze Alert? Hedge Fund Short Leverage Nears 5-Year High As Pros Dump Tech At Record Pace
October was the month hedge funds stopped arguing about AI and started hedging it.
That is the gist of Goldman's latest (and must read) monthly Prime Brokerage Insights & Analytics Chart Pack (available to pro subs), which tallies how the bank's prime clients repositioned through Oct 19, after a hotter-than-expected CPI print and renewed doubts over the payoff from AI capex sparked a sharp unwind in semis and AI infrastructure that started in Asian memory stocks. Goldman's Nelson Armbrust summed it up in Wednesday's What Matters Today (available to pro subs) under a headline that pretty much writes itself: "Heavy Shorting + Record Tech Selling = Sharp Net Leverage Reduction."