PivotalPath: Technology Leads Returns — and Allocator Demand

Equity sector strategies remained the strongest performers in May and continued to attract investor interest even as. AI positioning became increasingly crowded.

The Editorial Team June 10, 2026

Technology strategies continued to lead both performance and allocator interest in May. The PivotalPath Equity Sector Index returned 4.1 percent for the month and 11.6 percent year-to-date, making it the strongest-performing main index across both periods. It also ranked second in allocator research and search activity at 19.1 percent, behind Equity Diversified strategies. Together, the two categories accounted for roughly 42 percent of all current allocator interest.

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Within Equity Sector, demand remained concentrated in Technology/Media/Telecom and Healthcare managers. Notably, allocator interest continued to build even as AI positioning reached its most consensus level of the year and gross leverage approached an all-time high of roughly 350 percent.

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The month's gains remained narrow and technology-led. The PivotalPath Composite Index rose 1.6 percent, with eleven of twelve main indices positive. Asia contributed some of the strongest returns, as funds increasingly added exposure to the AI supply chain outside U.S. mega-cap technology stocks. Korean equities rose roughly 35 percent during the month and Taiwan approximately 16 percent, helping lift exposure to Japan, Korea, and Taiwan to about 20 percent of global hedge fund books, roughly three times their historical average.

Allocator demand showed little interest in strategies designed to benefit from volatility. Managed Futures and Volatility Trading attracted some of the lowest levels of research and search activity despite significant moves across rates, commodities, and currencies. According to PivotalPath, funds continued to hedge aggressively, pushing index and ETF shorts to a ten-year high. Yet allocator attention remained concentrated in equity and technology strategies, particularly among single-family offices, funds of funds, and private wealth platforms.