Adam Khoo: Hedge funds reduce stock holdings more rapidly than in March 2020 as AI stocks drop

Adam Khoo: Hedge funds reduce stock holdings more rapidly than in March 2020 as AI stocks drop
Hedge funds accelerate stock selloff

Hedge funds have dumped stocks at a rate even faster than in March 2020, and several AI-related stocks including IREN, SNDK, and INTC have fallen by more than 50%.

Adam Khoo pointed out that Americans are scheduled to vote in the midterm elections tomorrow, raising the question of whether a U.S. stock market crash is imminent or if a midterm election rally could begin.

Khoo recently highlighted that hedge funds have withdrawn stock allocations more quickly than at any point in the past decade, according to Morgan Stanley data. Earlier this year, he examined whether AI stocks were still propelling market performance nine months into 2026 in a separate report. These observations come as volatility intensifies ahead of the U.S. midterm elections.

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