Recurring series

Weekly Hedge Fund Highlights

Finvaulta tracks 5 editions of Weekly Hedge Fund Highlights from Morgan Stanley, published between May 14, 2026 and July 10, 2026. Each edition is summarized on its own page.

Latest edition · July 10, 2026

HF Highlights - 2026.07.10

Hedge funds resumed net buying in global equities last week, specifically targeting AI-related tech stocks after a significant late-June drawdown. While US leverage remains at historic lows, fund managers are increasingly diversifying into non-AI sectors like transportation and capital markets.

After a historic sell-off in June's tech momentum factors, hedge funds aggressively re-risked the AI trade, leading to record-breaking buying in Tech Hardware and Semiconductor companies. US L/S equity funds added to their net leverage, reaching 50% by week-end, although this remains within the 10th percentile of the last year. Simultaneously, funds are rotating into cyclical and thematic areas outside the AI complex, such as Airlines, Transports, and Homebuilders, while cooling their interest in the Biotech sector. Global performance for July has been challenging, though year-to-date figures remain robust across US and Asian L/S funds.

Read the latest edition in full

Key takeaways from the latest edition

1.Hedge funds pivoted to re-risking in the AI trade following a record-setting late June sell-off, with record buying in Tech Hardware and Semi Caps.
2.US hedge fund net leverage increased from 48% to 50% by the end of the week, though this remains at 12-month trough levels.
3.Outside the AI complex, hedge funds have shown consistent net buying in Airlines, Leisure Travel, Transports, Homebuilders, and Capital Markets.

What this series covers

Weekly HF Highlights
Weekly Flows: Global Summary
Weekly Flows: Sector Flows Summary
Regional Leverage: US, Europe, and Asia
Performance Highlights: MTD & YTD HF Performance Estimates
Crowding Performance: Top 50 Crowded Longs vs. Shorts
N. America Daily Crowding Perf: Top 50 Crowded Longs vs. Shorts

Edition archive

Series at a glance

Editions tracked: 5
First edition: May 14, 2026
Latest edition: July 10, 2026

All Morgan Stanley research

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