Data Insights: Technology reshapes hedge fund positioning in October
11 November 2026 Global
Image: stnazkul/stock.adobe.com
Markets experienced a sharp rotation during October, with investors moving away from some of the largest technology stocks as concerns emerged around AI infrastructure financing and credit conditions, according to Data Insights, a division of Hazeltree.
The institutional hedge fund market intelligence platform notes that the Nasdaq Composite fell approximately 5 per cent during the month, while the S&P 500 declined approximately 1 per cent.
In contrast, the S&P 500 Equal Weight Index gained approximately 5 per cent, highlighting stronger performance outside of the largest technology names.
Across the Magnificent Seven, on the short side, Amazon, Apple, Nvidia, and Meta recorded increases in fund participation, while Microsoft and Alphabet also registered gains. Tesla was the only Magnificent Seven stock to see a decline in short fund participation.
The Data Insights Crowding Report October 2026 (formerly known as the Hazeltree Crowding Report) also found that overall semiconductor sentiment turned less bullish during the month.
Advanced Micro Devices (AMD) stood out after shifting from a long-biased to a short-biased position in October.
On the short side, Entegris became the most crowded semiconductor name, followed by ON Semiconductor and AMD.
Tim Smith, managing director, Data Insights, Hazeltree, comments: “The month of October ushered in a sharp rotation out of some of the largest technology stocks as some of the major indices fell, but in an interesting contrast non-technology sectors performed well.
“AI infrastructure builders experienced some struggles with credit levels, most notably CoreWeave, which saw its default insurance costs widen and its 2032 bonds yield close to 15 per cent, approaching levels typically associated with distressed debt.”
The report evaluates the 10 most crowded regional short positions, broken out by large, mid, and small-cap categories, across the Americas, EMEA, and APAC during October 2026.
In North America, Kimberly-Clark recorded the largest rise in large-cap short crowding.
Dick's Sporting Goods, Tenable, Hims & Hers, Freshpet, Wynn Resorts, and Vaxcyte were among the leading mid-cap names, while The Greenbrier Companies and Ziff Davis topped the small-cap category.
In the EMEA region, Kering, BT Group, and Capgemini led the large-cap short crowding category.
Alstom and JD Sports were among the leading mid-cap names, while Vistry Group, Thyssenkrupp, and Television Francaise 1 SA featured prominently among small-cap securities.
The report also highlights activity across APAC, where Ibiden, Toyota, and Oriental Land Co recorded notable increases in large-cap short crowding.
Harmonic Drive Systems and J Front Retailing led the mid-cap category, while DroneShield, Minerals 260, Furuya Metal, and Infomart were among the most crowded small-cap short positions.
The Data Insights Crowding Report provides a look back at hedge fund long and short crowding across the Americas, EMEA, and APAC during October 2026.
It is based on Data Insights' analysis of data from approximately 16,000 securities on its proprietary securities finance platform, representing more than 700 global funds.
The institutional hedge fund market intelligence platform notes that the Nasdaq Composite fell approximately 5 per cent during the month, while the S&P 500 declined approximately 1 per cent.
In contrast, the S&P 500 Equal Weight Index gained approximately 5 per cent, highlighting stronger performance outside of the largest technology names.
Across the Magnificent Seven, on the short side, Amazon, Apple, Nvidia, and Meta recorded increases in fund participation, while Microsoft and Alphabet also registered gains. Tesla was the only Magnificent Seven stock to see a decline in short fund participation.
The Data Insights Crowding Report October 2026 (formerly known as the Hazeltree Crowding Report) also found that overall semiconductor sentiment turned less bullish during the month.
Advanced Micro Devices (AMD) stood out after shifting from a long-biased to a short-biased position in October.
On the short side, Entegris became the most crowded semiconductor name, followed by ON Semiconductor and AMD.
Tim Smith, managing director, Data Insights, Hazeltree, comments: “The month of October ushered in a sharp rotation out of some of the largest technology stocks as some of the major indices fell, but in an interesting contrast non-technology sectors performed well.
“AI infrastructure builders experienced some struggles with credit levels, most notably CoreWeave, which saw its default insurance costs widen and its 2032 bonds yield close to 15 per cent, approaching levels typically associated with distressed debt.”
The report evaluates the 10 most crowded regional short positions, broken out by large, mid, and small-cap categories, across the Americas, EMEA, and APAC during October 2026.
In North America, Kimberly-Clark recorded the largest rise in large-cap short crowding.
Dick's Sporting Goods, Tenable, Hims & Hers, Freshpet, Wynn Resorts, and Vaxcyte were among the leading mid-cap names, while The Greenbrier Companies and Ziff Davis topped the small-cap category.
In the EMEA region, Kering, BT Group, and Capgemini led the large-cap short crowding category.
Alstom and JD Sports were among the leading mid-cap names, while Vistry Group, Thyssenkrupp, and Television Francaise 1 SA featured prominently among small-cap securities.
The report also highlights activity across APAC, where Ibiden, Toyota, and Oriental Land Co recorded notable increases in large-cap short crowding.
Harmonic Drive Systems and J Front Retailing led the mid-cap category, while DroneShield, Minerals 260, Furuya Metal, and Infomart were among the most crowded small-cap short positions.
The Data Insights Crowding Report provides a look back at hedge fund long and short crowding across the Americas, EMEA, and APAC during October 2026.
It is based on Data Insights' analysis of data from approximately 16,000 securities on its proprietary securities finance platform, representing more than 700 global funds.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
