Hedge Funds Increase Exposure to Magnificent Seven Stocks to 22%
- Hedge funds’ net exposure to the Magnificent Seven stocks has risen to 22% of total US exposure.
- This marks a jump of about seven percentage points since July, the largest increase in three months.
- The Magnificent Seven includes Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla.
- US semiconductor imports surged by $2.4 billion in August to a record $15.4 billion.
The surge in hedge fund interest reflects a broader trend towards technology investments amid rising demand for semiconductors. The total US net exposure to semiconductor stocks is now at 12%, just below its peak of 14% recorded in June.
The current hedge fund strategy indicates strong confidence in tech sectors as they pivot from previous lows. Notably, this shift comes after a significant decline during the bear market of late-2022. (Source)
