Hedge funds trim exposure to megacap tech stocks, banks say

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Prelude to the Best Sommelier of Canada Contest | SaltWireNEW YORK - Global hedge funds reduced their exposure to mega cap tech stocks in recent days, ahead of the companies' third-quarter earnings, two Wall Street banks said.

Overall, the megacap companies are expected to post a 32.8% gain in earnings for the full year, while the rest of the S&P 500 sees a 2.3% decline over the same time, according to LSEG. Goldman Sachs Group showed a similar trend, adding hedge funds have net sold megacap tech stocks in the past two weeks.

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