Tony Pasquariello of Goldman Sachs Group stated that as Wall Street experienced its largest sell-off since July, hedge funds sold off tech stocks at the fastest pace in two years last Thursday, severely questioning market conviction in this trade. Pasquariello, Goldman's head of hedge fund client business, wrote in a note to clients that while the S&P 500 has been range-bound for three months, the apparent calm has masked a "persistent performance drawdown" since late June, as the AI trade unwound.