Hedge Funds Turn Net Sellers, Shorts Dominate US Equities; Tech Stocks Face Pressure, Goldman Sachs Reports

Hedge funds became net sellers of U.S. equities between June 12 and June 18, 2026, ending a four-week streak of net buying. Goldman Sachs' prime brokerage data indicates short selling activity now outweighs long purchases, particularly impacting technology stocks. The shift was driven by macro products (indices and ETFs), which saw net selling for the first time in five weeks with a 2.4-to-1 short-to-long ratio. Individual stocks also experienced net selling at a 1.1-to-1 ratio, primarily in North America and Europe. Information Technology and Industrial sectors were major targets for net selling, aligning with increased shorting in tech ETFs. Conversely, Financials, Materials, and Energy sectors attracted capital. While not signaling systemic de-risking, this structural adjustment suggests high-valuation tech stocks may face increased profit-taking pressure.