Once a popular short among hedge fund managers Elon Musk’s EV-manufacturer Tesla has reappeared on the list of their “VIP” stocks for the first time since 2022, according to a report by MorningStar citing new analysis from Goldman Sachs.
The VIP list, which tracks the positions most frequently found among hedge funds’ top 10 holdings, has outperformed broader markets this year, returning 15% versus 11% for the S&P 500. Tesla now ranks 30th, despite recent headwinds from softening sales.
The top of the list remains dominated by mega-cap tech, led by Amazon, Microsoft, Meta, Nvidia, Alphabet, TSMC, Broadcom and Apple, alongside Capital One and Mastercard. Goldman notes that all sectors bar real estate are represented.
While hedge funds have increased exposure to technology, rival analysis from Pictet suggests this is more a function of the sector’s growing share of the index rather than an intentional overweight.
Commenting on the Q2 data, Erlen Capital’s Bruno Schneller said managers appeared to be rotating back into “old winners” rather than building fresh conviction, adding that liquidity preferences remain the driving force in a “momentum-driven market”.
Major fund moves included Point72 returning to Amazon and Nvidia, Bridgewater adding Nvidia, Millennium re-entering bitcoin, and Citadel trimming exposure to Charles Schwab and the QQQ ETF.
