Hedge funds buy most tech shares since June 2025

Hedge funds bought up US technology and communication stocks on a large scale in the two weeks ending on 10 September. That is according to data from Goldman Sachs, shared by The Kobeissi Letter. The purchases were larger than in any comparable period since June 2025. Historically, the purchases were higher than in 97% of all two-week periods over the past five years.

In brief:

• In two weeks, hedge funds bought more US tech and communication stocks than in virtually any other period over the past five years.
• Demand was greatest for semiconductors, interactive media and IT services.
• Both sectors were the most bought sectors across all stock categories for two weeks in a row.

Semiconductors and media most in demand

The purchases focused in particular on three sub-sectors: semiconductors and semiconductor equipment, interactive media and services, and IT services. Demand was driven mainly by direct purchases of long positions, while shorting remained limited during this period.

As a result, both information technology and communication services ended as the two most bought sectors over two consecutive weeks, which points to a targeted and sustained inflow from the hedge fund sector.

Historically exceptionally high inflow

According to Goldman Sachs, there have been few two-week periods over the past five years in which hedge funds bought more US tech sectors than now. In only 3% of comparable periods were the purchases higher. Most of those exceptions took place during the 2022 bear market, when hedge funds likewise built up positions on a large scale as prices fell.

The current inflow therefore appears to be a clear signal that large investors have confidence in the tech sector, although the size of the purchases says nothing about the expected price development in the short term.