Some, but not all, US tech stocks are back in favour with hedge funds, according to a report by Bloomberg, with managers betting big on megacaps while reducing their overall holdings.
The report cites data released by Goldman Sachs as revealing that the focus was on “favoured names” in Q2 with conviction now back at a level last seen prior to the global pandemic.
Amazon.com Inc overtook Microsoft Corp as the most popular long position, while bets on Nvidia Corp, Apple Inc, Atlassian Corp and Tesla Inc have also all increased.
The average weightings of the top 10 holdings jumped to 70% in the three months ended June, the highest concentration since the first quarter of 2020, while position turnover for the funds fell to a record low of 23%.
Goldman Sachs data is based on analysis of the holdings of hedge funds with a combined $2.4 trillion of gross equity positions. The average fund gained 4% since the start of July, narrowing year-to-date losses to 9%.
