Despite recent record highs for the broader stock market indexes, hedge funds continue to favour the Magnificent 7 play.
“The Magnificent 7 stocks together now account for 20.7% of total U.S. single stock Net exposure, the highest level on our record and surpassing the previous peak level of 20% seen last summer.”
The term “Magnificent 7” designates a collection of megacap stocks that collectively represent the titans of the tech sector: Apple, Amazon, Alphabet, Microsoft, Nvidia, and Tesla.
The market’s surge last year was fueled by this group, and hedge funds’ exposure to these stocks is now again more than twice as high as it was eighteen months prior.
Source (CNBC)
