Hedge Funds Lift Tech Bets to Records as AI Fuels Momentum Surge

Hedge funds ramped up technology exposure at the fastest pace in nearly three months, pushing positions relative to the MSCI World index to the highest level in over five years and global IT bets to record highs since 2016. The buying spree, concentrated in North America and Asian emerging markets, coincides with an AI-powered rally that has driven the MSCI global momentum gauge to outperform the MSCI All Country World Index by 17 percentage points since the end of March. This spread is on track to mark the strongest two-month outperformance on record in data back to 1991, highlighting persistent bullish flows into semiconductor and software names despite geopolitical risks.