Capital is rushing to the sidelines: In March, hedge funds conducted their most aggressive selling of world stocks since 2013, according to Goldman Sachs data. Not even the 2020 pandemic saw such a sharp exposure reduction in global equities. This was particularly driven by hedge funds dumping US technology stocks. This also contributed to the largest S&P 500 underperformance versus global stocks in 16 years during Q1 2025. The rush to the sidelines is real.