"Hedge Funds' Shifting Stakes: The Magnificent Seven and Market Moves"
Despite reaping gains from the Magnificent Seven tech giants, top hedge funds have begun reducing their exposure to these popular mega-cap tech companies, as revealed by Goldman Sachs' analysis. The tech giants have accounted for 13% of hedge funds' aggregate long portfolios, but a shift has seen them become net sellers of these firms, despite their strong performance in 2024. Goldman Sachs warns of a potential "violent unwind" due to high levels of crowding and momentum, with Microsoft already on the "Falling Stars" list. Hedge funds are now seeking gains in cyclical industries and global manufacturing, with companies like General Electric and Union Pacific Corporation gaining favor.
- Hedge funds have started selling stakes in the Magnificent Seven, despite the bumper returns MarketWatch
- Hedge funds cut Magnificent Seven in last quarter, Goldman says Yahoo Finance
- Want an S&P tracker except worse? Hedge funds have you covered Financial Times
- Health Care Now Most Overweighted Sector As Hedge Funds Crowd Into Magnificent 7 - Apple (NASDAQ:AAPL), A Benzinga
- Hedge funds buy stocks amid 'almost no panic' market, says Goldman XM
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