Posted 2/21/2024, 4:57:00 AM
Hedge Funds Pull Back From Big Tech Stocks on Overvaluation Fears
- Hedge funds reduced exposure to big tech "Magnificent Seven" stocks in Q4 amid concerns about overvaluation
- Funds were net sellers of 6 of the 7 mega-cap tech stocks, with only Amazon seeing no decrease
- Funds rotated into cyclical stocks and some growth areas as economic data improved
- High hedge fund crowding, momentum, and leverage aided returns recently but risk "violent unwind"
- Megacap tech earnings reports were mixed, with attention on Nvidia results and AI boom expectations