"Hedge Funds' Shifting Positions on the Magnificent Seven Stocks"

Hedge funds reduced their exposure to the "Magnificent Seven" megacap tech stocks in the fourth quarter, with all except Amazon seeing a decrease in exposure, as investors question whether the group can replicate last year's performance. Goldman Sachs analysts noted a shift towards cyclicals and some growth opportunities, as well as the risk of a violent unwind if the market environment changes. Earnings reports from the group have been mixed, with some beating expectations and others showing weakness, while option trades imply an 11% earnings move for Nvidia.