The top 20 most widely held stocks among hedge fund managers, including some of the "Magnificent Seven" tech giants, trailed the S&P 500 during the third quarter of 2024 with a 3.4% gain compared to the index's 5.2% increase, according to a report by Institutional Investor.
The stocks, as identified by SEI, did outperform the Nasdaq Composite’s modest 1.73% increase.
Concentrated in tech, healthcare, financials, and a few other sectors, 12 os the 20 delivered gains in the third quarter, while seven recorded losses, and one was flat. Notably, six stocks achieved double-digit growth: UnitedHealth Group (+14.8%); Meta Platforms (+13.5%); Berkshire Hathaway (+13.1%); Mastercard (+11.9%); Johnson & Johnson (+11%); and Apple (+10.6%).
All but two of these high performers came from non-tech sectors, reflecting hedge funds' broader diversification beyond technology.
Despite being among the most popular hedge fund picks, three tech heavyweights struggled in the third quarter. Amazon and Microsoft both dropped nearly 9%, while Nvidia, another major tech holding, fell 1.7% after hitting its peak in July.
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