Hedge funds bailed on tech stocks just in time, getting out of the battered sector and into a more defensive stance just as the market started its fourth-quarter slide.
Managers rotated out of both information technology and its new related sector, communication services, as the fourth quarter began in October, according to a Goldman Sachs analysis. The funds in Goldman's coverage universe slightly lowered their infotech underweight and made communication services, which features such industry luminaries as Facebook, Netflix and Alphabet, its biggest underweight.
The move came "as widely-owned growth stocks face skepticism about the sustainability of high growth rates," David Kostin, Goldman's chief U.S. equity strategist, said in a note.
The market began a slide in early October that briefly hit 10 percent correction territory.