Hedge funds across the globe are reducing their exposure to mega cap tech firms, according to a report by Reuters that cites data from JPMorgan Chase’s positioning Intelligence Unit.
Megacap companies are expected to post a 32.8% gain in earnings for the full year, while the rest of the S&P 500 sees a 2.3% decline over the same time, the report said citing data from LSEG.
According to the reports sources as JPMorgan Chase, total exposure to megacap tech stocks remain at close to record levels back to 2018.
The report quoted sources familiar with the matter that while a substantial portion of hedge fund portfolios remains exposed to mega cap tech firms, funds are now cutting back exposure- noting that Goldman Sachs has been selling some of its mega cap tech firm stock in the past two weeks.
