To The Moon

A recent Goldman Sachs analysis of 744 hedge funds with total equity exposure of $2.4 trillion and 528 mutual funds with assets under management of $2.8 trillion showed that Q2 hedge funds and mutual funds increased their exposure

In the past six months since 2017, $S&P 500(.SPX)$ $Stocks are more micro-driven (company-level), which is caused by the decline of stock correlation. More micro-driven markets are usually related to more opportunities for stock selectors to capture Alpha. When stock returns are more micro-driven, hedge fund returns are historically more positive.

Hedge funds and mutual funds are sacrificing $Technology Select Sector SPDR Fund(XLK)$ And $Consumer Discretionary Select Sector SPDR Fund(XLY)$ And other growth areas, turning to cyclical stocks. In the first half of this year, seven super-large technology stocks pushed up the S&P 500 index. Since then, the fund has reduced its exposure to these two industries

Top 6 over-allocated by hedge funds and mutual funds

$Cigna Insurance (CI) $

$Feizhe Financial Services (FI) $

$MasterCard (MA) $

$UBER $

$Visa (V) $

$Workday (WDAY) $

Where CI is added by Q2.

The median dynamic PE of Top 6 is 58% higher than that of SPX as a whole, while the overall performance lags behind SPX by one percentage point.

Hedge funds and mutual fundsTop 21 of unfavored stocks:

$ABBV Corporation (ABBV) $$Caterpillar (CAT) $$Costco (COST) $$Chevron (CVX) $$Disney (DIS) $$Ford Motor (F) $$Home Depot (HD) $$IBM (IBM) $$Intel (INTC) $$Illinois Machinery (ITW) $$Johnson & Johnson (JNJ) $$McDonald's (MCD) $$Moderna, Inc. (MRNA) $$Pepsi Cola (PEP) $$Pfizer (PFE) $$Procter & Gamble (PG) $US Telephone and Telegraph (T) $$SeymourFischer (TMO) $$Tesla (TSLA) $$Wal-Mart (WMT) $$ExxonMobil (XOM) $

Mutual funds and hedge funds have different positions. The former is over-allocated, while the latter sells six stocks

$Bank of America (BAC) $

$Comcast (CMCSA) $

$INTU $

$Schwab (SCHW) $

$United Health (UNH) $

$United Bank of America (USB) $

Conversely, hedge funds are significantly over-allocated, but mutual funds are under-held, including

$Apple (AAPL) $

US Ultramicro Inc. (AMD) $

$Amazon (AMZN) $

$Broadcom (AVGO) $

$Boeing (BA) $

$Berkshire B (BRK.B) $

$Google (GOOG) $

$Lilly (LLY) $

$META Platforms (META) $

$Microsoft (MSFT) $

$Nvidia (NVDA) $