MW Mega-cap tech stocks still make up core of hedge funds' top positions, analysis shows
By Louis Goss
Mega cap tech stocks still make up the core of hedge funds' top 20 equity positions, according to new analysis of 332 money managers with assets worth more than $1 billion.
The 'Magnificent Seven' giants accounted for hedge funds' top six equity positions, the analysis of public filings on the blog Your Weekend Reading.
Amazon.com $(AMZN)$ took top position as the number one most commonly held stock among hedge funds, followed by Microsoft $(MSFT)$, Apple $(AAPL)$, Meta Platforms (META) and Alphabet Class A $(GOOGL)$.
Nvidia $(NVDA)$, which has seen its share price increase by almost 170% in the year-to-date, took sixth place ahead of rival chipmaker Broadcom $(AVGO)$.
New entrants to the list of hedge funds most commonly held stocks over the past month included Spotify Technology $(SPOT)$, Thermo Fisher Scientific $(TMO)$, GE Vernova $(GEV)$, and Adobe $(ADBE)$.
Hedge funds, nonetheless, remained underweight in tech compared to the wider S&P 500 index SPX which is now increasingly dominated by the world's top tech companies.
Tech stocks currently account for 16% of hedge funds' portfolios compared to 30% of the wider S&P 500 index by market value, the blog notes.
Alphabet Class C $(GOOG)$ shares took seventh place on the list of the top 20 equity positions, followed by payments giant Visa (V) and chipmaker Taiwan Semiconductor Manufacturing Co (TW:2330).
Eli Lilly $(LLY)$, which has seen its share price surge on excitement around the potential of its GLP-1 weight loss drug, took 11th place.
UnitedHealth Group $(UNH)$ found itself in 12th place, ahead of Uber Technologies $(UBER)$, Mastercard $(MA)$, Spotify, Thermo Fisher, and General Electric's energy spinoff GE Vernova.
Spotify shares surged in July as the company posted record profits driven by a sharp increase in subscriber numbers.
Salesforce $(CRM)$, Berkshire Hathaway $(BRK.A)$, and Adobe took 18th, 19th and 20th place on the list, the analysis shows.
-Louis Goss
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August 20, 2024 05:30 ET (09:30 GMT)
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