šØ Positioning Warning: Hedge Funds Are Piled Into Semiconductors Like Never Before
The data is flashing a clear signal: hedge fund exposure to semiconductor stocks has just hit an all-time high. With a net exposure of 8.7%, the trade is now extremely crowded.
History tells us that when positioning gets this one-sided, it often sets the stage for heightened volatility or a sharp rotation out of the sector. Everyone is leaning the same way in the boat.
Hereās what to watch: When a dominant tech theme becomes this stretched, capital starts hunting for the next opportunity. These flows donāt just vanishāthey rotate. And often, crypto markets tend to feel that shift early, acting as a liquidity sink or a high-beta outlet when money moves out of mega-cap tech.
Itās not a prediction of an immediate crash, but a reminder that record crowding is a risk in itself. Smart money is rarely this unanimous for long.
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