Data Insights: Rising rates and energy-driven inflation impact global hedge funds
15 October 2026 Global
Image: rahit/stock.adobe.com
Rising interest rates and energy-driven inflation emerged as key themes for global hedge funds in September, as a 25-basis-point Federal Reserve interest rate hike triggered a broad selloff in global bond markets, says Data Insights, a division of Hazeltree.
According to the platform, equity market gains were concentrated in a narrow group of AI-linked mega-cap technology stocks.
Across the Magnificent Seven, on the long side, Alphabet experienced a moderate month-over-month increase in fund participation, alongside modest gains in Meta, Microsoft, Nvidia, and Amazon, while Apple and Tesla stood apart by posting modest declines.
Conversely, on the short side, Meta and Tesla saw notable increases in fund participation and Microsoft a moderate increase, while Nvidia, Amazon, Alphabet, and Apple all experienced reductions.
The Data Insights Crowding Report September 2026 (formerly known as the Hazeltree Crowding Report) notes that overall semiconductor sentiment turned modestly more bullish in September.
Tracking activity through the PHLX Semiconductor Sector Index, the share of constituents exhibiting net long positioning increased to 76.7 per cent from 73.3 per cent the prior month.
Securities exhibiting sentiment shifts included Broadcom, which flipped from short-biased to long-biased in September as net long exposure crossed above 50 per cent.
On the short side, Teradyne emerged as the most crowded name, followed by ON Semiconductor, and Advanced Micro Devices.
Tim Smith, managing director, Data Insights, Hazeltree, comments: “While market gains in September were concentrated in AI-linked mega-cap technology stocks, rising interest rates and inflation concerns both contributed to market volatility.
“The Fed’s rate hike and subsequent market reaction reinforced the prospect that monetary policy could remain restrictive for longer than investors had anticipated.
“Broadcom stood out in September as its positioning shifted from short-biased to long-biased, with net long exposure crossing above the 50 per cent mark from 34.1 per cent to 54.1 per cent, as funds used the pullback to rebuild long exposure.”
The report evaluates the 10 most crowded regional short and long positions, broken out by large, mid, and small-cap categories, across the Americas, EMEA, and APAC during September 2026.
In North America, Norwegian Cruise Line and Dick's Sporting Goods were the top of the mid-cap category, while LeMaitre Vascular came top of the small-cap short crowding increase category.
In the EMEA region, the large-cap category saw Kering become the most crowded security, while Melrose was top of the mid-cap category, and Kinnevik, Energean, and CVS Group all shared top place for small-cap short crowding.
The report also highlights the leaders in APAC, which saw mid-cap short crowding increase from J&T Express, while Ganfeng Lithium, Nanosonics, and IPH lead the small-cap category.
According to the platform, equity market gains were concentrated in a narrow group of AI-linked mega-cap technology stocks.
Across the Magnificent Seven, on the long side, Alphabet experienced a moderate month-over-month increase in fund participation, alongside modest gains in Meta, Microsoft, Nvidia, and Amazon, while Apple and Tesla stood apart by posting modest declines.
Conversely, on the short side, Meta and Tesla saw notable increases in fund participation and Microsoft a moderate increase, while Nvidia, Amazon, Alphabet, and Apple all experienced reductions.
The Data Insights Crowding Report September 2026 (formerly known as the Hazeltree Crowding Report) notes that overall semiconductor sentiment turned modestly more bullish in September.
Tracking activity through the PHLX Semiconductor Sector Index, the share of constituents exhibiting net long positioning increased to 76.7 per cent from 73.3 per cent the prior month.
Securities exhibiting sentiment shifts included Broadcom, which flipped from short-biased to long-biased in September as net long exposure crossed above 50 per cent.
On the short side, Teradyne emerged as the most crowded name, followed by ON Semiconductor, and Advanced Micro Devices.
Tim Smith, managing director, Data Insights, Hazeltree, comments: “While market gains in September were concentrated in AI-linked mega-cap technology stocks, rising interest rates and inflation concerns both contributed to market volatility.
“The Fed’s rate hike and subsequent market reaction reinforced the prospect that monetary policy could remain restrictive for longer than investors had anticipated.
“Broadcom stood out in September as its positioning shifted from short-biased to long-biased, with net long exposure crossing above the 50 per cent mark from 34.1 per cent to 54.1 per cent, as funds used the pullback to rebuild long exposure.”
The report evaluates the 10 most crowded regional short and long positions, broken out by large, mid, and small-cap categories, across the Americas, EMEA, and APAC during September 2026.
In North America, Norwegian Cruise Line and Dick's Sporting Goods were the top of the mid-cap category, while LeMaitre Vascular came top of the small-cap short crowding increase category.
In the EMEA region, the large-cap category saw Kering become the most crowded security, while Melrose was top of the mid-cap category, and Kinnevik, Energean, and CVS Group all shared top place for small-cap short crowding.
The report also highlights the leaders in APAC, which saw mid-cap short crowding increase from J&T Express, while Ganfeng Lithium, Nanosonics, and IPH lead the small-cap category.
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