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B. G., Opalesque Geneva:
According to the latest briefing from investment bank Goldman Sachs,
"megacap" tech stocks are increasingly popular mainstays of equity portfolios.
Collectively, the Big Seven tech stocks - Microsoft, Google, Amazon, Meta, Apple, Nvidia, and Tesla - now make up 18.9% of hedge funds' total US net exposure to single stocks. This compares to a peak of 20% seen in July, up from 9% at the start of 2023. The current share, part of a historically high phase, ranks in the 95th percentile compared to exposure levels over the past five years.
In November, Goldman Sachs' analysis of filings from 735 hedge funds with $2.4tn found that hedge funds had doubled their investments in the seven tech stocks and reduced their exposure to the energy, healthcare, and industrials sectors. That resulted in the mega-cap holdings accounting for 13% of all US hedge fund long positions, according to Financial News.
Mega-cap tech may not be worth the risk
The bank's analysts expect S&P 500 index gains to be concentrated in the second half of 2024. "Resilient economic growth in the beginning of the year will force the market to push back its current pricing that Fed cuts will begin ...................... To view our full article Click here
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