Hedge funds offloaded technology shares at the fastest pace in 12 months last week, according to a client note from Goldman Sachs. The bank said the exodus, concentrated in North America and Europe, spanned the entire sector—from semiconductor makers to software and IT services—and marked the biggest unwind since July 2024. The shift comes as major equity benchmarks hover near record levels. The S&P 500 has climbed about 28% from its 2025 low and now trades at a forward price-to-earnings ratio of 23.11, roughly 30% above its decade average, while the Nasdaq Composite is up 38% over the same period. Rather than shorting tech, funds mainly closed long positions, Goldman noted. At the same time, they increased exposure to consumer-staples companies—makers of food, beverages and personal-care products—for a fourth consecutive week, taking almost exclusively long positions in the traditionally defensive sector. Within megacap names, Apple stands out as a popular hedge-fund relative short and remains the largest mutual-fund underweight, Goldman added. The re-positioning comes ahead of a packed corporate earnings calendar that will test the durability of the market’s rally and investors’ preference for higher-growth companies.