Hedge funds take Magnificent Seven exposure to record high
Tech mega-caps account for more than 20% of funds' US stock exposure.
Hedge funds’ exposure to US technology behemoths hit a record high following Nvidia Corp.’s estimate-thumping earnings report last week, according to Goldman Sachs Group Inc.’s prime brokerage.
The so-called Magnificent Seven companies — Nvidia, Apple Inc., Amazon.com Inc., Meta Platforms Inc., Alphabet Inc., Tesla Inc. and Microsoft Corp. — now account for about 20.7% of hedge funds’ total net exposure to US single stocks, the report showed.
An index tracking the tech mega-caps has soared since Nvidia’s quarterly earnings once again impressed investors, feeding the frenzy around artificial intelligence. Nvidia alone has added about $470 billion in market capitalization since it released results late on Wednesday last week.
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