Goldman Sachs Warns "Buy Everything AI" Era Over as Hedge Funds Sell Tech Stocks for Fourth Consecutive Week

According to Goldman Sachs, as of the week ended July 2, hedge funds cut technology stock holdings for a fourth consecutive week, with the bank's traders signaling that the "buy everything AI" market regime has ended and differentiation is returning. Trader Benny Quek stated in the report that "the market will reward quality and execution, not beta exposure," marking a shift away from indiscriminate tech investment.

Goldman's equity fundamental long-short strategy declined 1.53% during the June 26-July 2 period, underperforming the MSCI World Index's 1.67% gain. Most notably, the bank's high-beta momentum portfolio (GSPRHIMO), composed primarily of semiconductor and memory stocks, fell 19% over two weeks. Goldman attributed the selloff to year-end rebalancing, seasonal factors, crowded positioning, and style rotation rather than a fundamental shift in AI investment conviction.