Hedge Funds Shift to Underweight Position on AI Trade for First Time Since 2023
According to a report from Morgan Stanley, hedge funds have officially reduced their exposure to the artificial intelligence sector, moving to an 'Underweight' position. This shift marks the first time since early 2023 that institutional investors have scaled back their AI-related holdings. The move concludes one of the longest sustained periods of portfolio de-risking observed in over 15 years. Analysts suggest this pivot reflects a broader market recalibration as investors reassess the immediate returns and valuations associated with the massive capital expenditures required for AI infrastructure.
Topics: Artificial Intelligence Hedge Fund Activity Portfolio De-risking