Hedge funds have upped their exposure to the seven biggest technology company stocks to the highest level ever seen, just as Nvidia hit an all-time individual high after exceeding revenue expectations, according to a report by Reuters.
The report cites data from Goldman Sachs’ prime brokerage unit as revealing that the largest seven US stocks collectively now make up about 20% of the total net market value held by hedge funds and have played a major part in gains seen across the broad US equities market so far in 2023.
Microsoft, Apple, Alphabet, Meta, Amazon, Nvidia and Tesla saw the biggest percent of single stock exposure as of Aug. 24, meaning the positions were trades in the individual stocks, not just in the indices like the Nasdaq.
In a note seen by Reuters, which was originally sent to a restricted group of clients, Goldman Sachs wrote: “Hedge funds continue to embrace mega cap tech and the artificial intelligence theme”. Microsoft, Apple, Alphabet, Meta, Amazon, Nvidia and Tesla all saw the biggest percentage of single stock exposure as of 24 Aug, showing that the positions were trades in individual stocks rather than in indices such as the Nasdaq.