tech
Stockpicking hedge funds are 'all in' on AI bets
Hedge funds are making their biggest-ever bet on AI, with names like Amazon and Nvidia among their most popular holdings, a Goldman report says.
TL;DR
- Hedge funds have made the largest-ever shift into information technology stocks.
- Average stockpicker now allocates 10% of portfolios to semiconductor companies.
- Hedge fund popular stock basket outperformed the S&P 500 through May 21.
- Amazon, Nvidia, Alphabet, Microsoft, and Meta are the five biggest holdings in the popular basket.
- Software stocks' portion of hedge funds' portfolios is at its lowest level since 2019.
- Bets against companies in defensive sectors are at or near record levels.
- Financials are the only non-tech sector where hedge funds added exposure in Q1, with Wells Fargo being a popular addition.