Hedge Funds Log Largest U.S. Equity Buying in 5 Weeks Driven by Tech and Software Short Covering

Hedge funds recorded their largest weekly net purchases of U.S. equities in five weeks, driven by a combination of short covering in macro products—including index futures and ETFs—and outright long buying in single stocks.
Demand was heavily concentrated in Information Technology and Communication Services, with managers remaining net buyers across both sectors for three straight weeks.
Within tech, software equities saw sustained accumulation, marking net purchases for four consecutive weeks and in six of the past eight weeks.
Following the influx, hedge fund exposure to software rose to approximately 5.0% of total market allocation—the highest level since early this year and up sharply from a record low of 1.3% recorded in February.