Hedge Fund Trend Monitor: All In on AI

Goldman Sachs analyzes 1,059 hedge funds with $4.6 trillion in gross positions, highlighting a record-breaking rotation into AI infrastructure and Information Technology. Hedge funds are carrying elevated leverage and the highest median short interest since 2011 while doubling down on the AI trade.

Key Takeaways

• 1.Hedge funds have pivoted aggressively toward the AI trade, specifically in Semiconductors, which now represent a record 10% of long portfolio weights.
• 2.The Information Technology sector saw its largest quarterly increase in net tilt on record (+853 bp).
• 3.Gross leverage remains extremely elevated, ranking in the 94th percentile relative to the last 5 years, while short interest is at a 15-year high for the median S&P 500 stock.

Table of Contents

• 5 key points from the Goldman Sachs Hedge Fund Trend Monitor
• Performance, leverage, and short interest
• Concentration, crowding, and turnover
• AI rotations
• Sector positions
• The Hedge Fund VIP List: “The stocks that matter most”
• Rising and falling stars
• The most concentrated hedge fund positions
• ETF ownership
• Appendix A: Hedging the Hedge Fund VIP List
• Appendix B: Hedge fund data tables
• Appendix C: 100 largest hedge funds in our analysis ranked by equity assets
• Appendix D: Drawbacks of our hedge fund holding analysis

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