Goldman Sachs: Hedge Fund Net Leverage Surges Above 80%, Tech Stock Risk Concentration at Record High

According to Goldman Sachs strategists, global hedge funds' net leverage surged above 80% within two months, up from below 70%, marking the fastest and most concentrated buildup of risk exposure in tech stocks. The bank's report notes that hedge funds increased their net exposure to information technology by 853 basis points, the largest quarterly increase on record. Meanwhile, retail investor participation and inflows to semiconductor-heavy sectors have climbed to cyclical highs, with investors increasingly using leveraged instruments tied to AI trades.
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