Key Takeaways
- • Global hedge funds maintained strong appetite for technology and semiconductor names in May 2026, per Hazeltree's May 2026 Crowding Report, despite inflation concerns, rising energy prices, Middle East conflict, and fiscal sustainability questions.
- • The PHLX Semiconductor Sector Index constituents with net long positioning rose from 57% in April to 60% in May, with Texas Instruments flipping from short-biased to long-biased.
- • NXP Semiconductors' long-to-short fund count ratio nearly doubled from roughly 2:1 in April to 4:1 in May, the largest improvement in the sector, with long fund participation up about 17.3% month-over-month.
- • Among the Magnificent Seven, hedge funds added long exposure to Alphabet and Apple, while short interest intensified in Amazon and Meta and Tesla remained the least favored name.
- • Nvidia showed the most pronounced long-side crowding among semiconductors, while ON Semiconductor remained the most crowded short.
Summary
Global hedge funds maintained a strong appetite for technology and semiconductor companies in May, extending a trend that has persisted through much of 2026 despite inflation concerns, rising energy prices, ongoing Middle East conflict, and questions over fiscal sustainability. According to Hazeltree, a provider of treasury and liquidity management solutions for alternative asset managers, the MSCI World Index, S&P 500, and Nasdaq Composite closed May near record highs after global equities extended April's rally.
Based on its May 2026 Hazeltree Crowding Report, the firm observed long interest in Alphabet and Apple and a decline in Meta among the Magnificent Seven. Short positioning moved toward Amazon and Meta, while Microsoft and Apple saw noticeable reductions. Tesla remained the least favored name in the group, with persistent bearish positioning measured by the long-to-short fund count ratio.
Semiconductors continued to attract hedge fund attention. Hazeltree tracked the PHLX Semiconductor Sector Index, which includes 30 of the largest U.S.-traded semiconductor companies, and found the share of constituents with net long positioning rising from 57% in April to 60% in May. Texas Instruments flipped from short-biased to long-biased on both fund count and net long exposure measures. Crowding was most pronounced on the long side in Nvidia, followed by Broadcom and Applied Materials. On the short side, ON Semiconductor was the most crowded name, followed by Monolithic Power Systems and Microchip Technology.
Tim Smith, managing director of Data Insights at Hazeltree, said managers showed more confidence that the market rally had legs despite lingering concerns about inflation, energy prices, and geopolitical tensions. He highlighted NXP Semiconductors, whose long-to-short fund count ratio nearly doubled from roughly 2:1 to 4:1, the biggest improvement in the sector. Long fund participation in NXP rose approximately 17.3% month-over-month, with short participation declining as the stock rose 10% between April and May.
At the single-name level, Hazeltree's report, which covers approximately 16,000 securities and more than 600 global funds across the Americas, EMEA, and APAC, flagged notable regional movers with greater than 10% month-over-month changes in fund counts, including Kioxia, Lasertec, and Adyen. Crowding scores are relative measures normalized against regional and market-cap peers, so a long position may reflect either price expectations or hedging of short exposure.
Based on its May 2026 Hazeltree Crowding Report, the firm observed long interest in Alphabet and Apple and a decline in Meta among the Magnificent Seven. Short positioning moved toward Amazon and Meta, while Microsoft and Apple saw noticeable reductions. Tesla remained the least favored name in the group, with persistent bearish positioning measured by the long-to-short fund count ratio.
Semiconductors continued to attract hedge fund attention. Hazeltree tracked the PHLX Semiconductor Sector Index, which includes 30 of the largest U.S.-traded semiconductor companies, and found the share of constituents with net long positioning rising from 57% in April to 60% in May. Texas Instruments flipped from short-biased to long-biased on both fund count and net long exposure measures. Crowding was most pronounced on the long side in Nvidia, followed by Broadcom and Applied Materials. On the short side, ON Semiconductor was the most crowded name, followed by Monolithic Power Systems and Microchip Technology.
Tim Smith, managing director of Data Insights at Hazeltree, said managers showed more confidence that the market rally had legs despite lingering concerns about inflation, energy prices, and geopolitical tensions. He highlighted NXP Semiconductors, whose long-to-short fund count ratio nearly doubled from roughly 2:1 to 4:1, the biggest improvement in the sector. Long fund participation in NXP rose approximately 17.3% month-over-month, with short participation declining as the stock rose 10% between April and May.
At the single-name level, Hazeltree's report, which covers approximately 16,000 securities and more than 600 global funds across the Americas, EMEA, and APAC, flagged notable regional movers with greater than 10% month-over-month changes in fund counts, including Kioxia, Lasertec, and Adyen. Crowding scores are relative measures normalized against regional and market-cap peers, so a long position may reflect either price expectations or hedging of short exposure.
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