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Alternative Market Briefing

Opalesque Roundup: Hedge funds up their bets on the 'Magnificent 7' tech stocks: hedge fund news

Monday, November 27, 2023

In the week ending November 24th 2023, hedge fund crowding has hit its highest on record, as asset managers have upped their bets on the "Magnificent 7" tech stocks that have juiced up portfolio returns this year, Goldman Sachs said. Megacap growth and technology stocks accounted for 13% of the aggregate hedge fund long portfolio, twice their weight at the start of 2023.

The "Magnificent Seven" stocks have led the market this year: Alphabet , Amazon, Apple, Meta, Microsoft, Nvidia and Tesla. "I think they will remain leaders next year," said David Kostin, chief U.S. equity strategist at Goldman Sachs.

Meanwhile, a latest report revealed that although 65% of those managers were located in North America, 17% were based in Europe, 13% operated from Asia-Pacific and the remaining 5% were located in the rest of the world. Moreover, the institutional investors that allocate to hedge funds are similarly dispersed across the globe, with 68% in North America, 18% in Europe, 8% in Asia and the remaining 6% elsewhere

In new launches, Bridgewater is planning to launch a fund next July that will be driven by AI - the fund's AIA Lab is working to replicate every stage of the investment process with machine learning; The hedge fund Jain Global is due to launch in July 2024 - when it does, it's expected to have anything from $8bn to $10bn in assets under management, and ......................

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