English
French
German
Italian
Russian
Spanish
These are the top 5 stocks owned by Hedge Funds
These are the top 5 stocks owned by Hedge Funds By Investing.com
Breaking News
‘;
AuthorVahid KaraahmetovicPro News
Published Feb 29, 2024 09:30AM ET
© Reuters. These are the top 5 stocks owned by Hedge Funds
This InvestingPro article is being provided to you for FREE to highlight the incredible insight being shared with pro users in real-time. To see more insightful market-focused articles like this upgrade to InvestingPro today using promo code HOT2024 and receive an additional 10% off already discounted prices. This offer won’t last long. Act today! Click here to upgrade and don’t forget the promo code.
*******
In a recent note from Wednesday, strategists at Jefferies said that hedge funds entered 2024 with a more cautious approach, reducing their overall risk exposure to below the long-term average at 166%.
Specifically, these funds have adjusted their investments toward the so-called Secular Growth sectors as they move into 2024, yet they remain overweight (OW) by 7% in these areas, which account for half of their portfolio.
Despite decreasing their stake in Secular Growth, investors have increased their investments in what Jefferies refers to as the ‘Sweet 16’ (akin to the ‘Magnificent 7’), with their allocation in these specific stocks reaching 36%, the highest since July, and standing 3.3% overweight compared to the S&P 500.
“The big cut in Secular Growth’s weight took place in Health Care, as the group was trimmed by over 10% from the previous month, but was OW by 4%. Comm Services was trimmed once again, with the weight now at 12.2% vs. its recent peak of 19.0%,” analysts said in the note.
The tech sector saw its weight in hedge fund portfolios increase to 25.4% from 19.7% just a month prior. However, even with this increase, the sector is still underweight (UW) by more than 3% relative to the S&P 500.
The investments from Secular Growth were mainly shifted to Cyclicals, increasing their weight in the latter to 47%. There was also a notable move from the Industrials to Discretionary sectors, with the former now being UW and Discretionary OW.
Further, funds transitioned from a net short to a net long position in Energy for the first time since September 2022.
As for individual stocks, the hedge funds’ top 5 holdings are Microsoft (NASDAQ:MSFT), with a net weight of 8.7%, while Amazon (NASDAQ:AMZN) sits close behind at 7.2%.
“Half of Hedge Fund holdings are in the “Most Popular Longs” portfolio, and it saw modest turnover: Across our “Most Popular Long” portfolio, we see that these names represent half of the Hedge Fund assets with MSFT and AMZN combined representing 16%,” analysts highlighted.
Meta Platforms (NASDAQ:META) is the third highest-owned stock with a net weight of 4.9%, followed by Nvidia (NASDAQ:NVDA) and Alphabet (NASDAQ:GOOGL) at 4.1% and 3.7%, respectively.
These are the top 5 stocks owned by Hedge Funds
Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information
© 2007-2024 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
