Hedge funds dump AI stocks at record pace, cutting exposure 8% from peak
sachinmaya1980 · x · 2026-11-01
Morgan Stanley prime brokerage data shows hedge funds pulling out of equities at the fastest pace on record, cutting total positions over 8% from the recent peak — bigger than the 2020 COVID crash and 2021 GameStop squeeze.
- Goldman Sachs reports 5 straight days of AI stock selling (Oct 8–14), erasing all 2025 AI buying
- Selling ran 3.5x faster than new shorts — funds exiting, not betting against
- Morgan Stanley's AI basket fell 18% in October while the average US stock rose 2%
- Memory stocks (Samsung, SK Hynix, Micron, SanDisk) lost $700B+ in seven trading days
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