Hedge funds trim holdings in 'Magnificent 7' stocks in Q2

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Hedge funds trim holdings in 'Magnificent 7' stocks in Q2 - report

Preliminary data for the second quarter of 2024 indicated that hedge funds have slightly reduced their holdings in a group of stocks known as the"Magnificent 7," following three consecutive quarters of significant increases.

Brokerages, on the other hand, have maintained their investment levels in the"Magnificent 7" stocks during the same period, with their share of ownership also substantially above pre-pandemic figures. In contrast to hedge funds, active real-money managers, particularly those overseeing the 100 largest active U.S. equity mutual funds, have maintained or increased their overweight positions in certain tech stocks, opting not to take profits.Macro managers, who typically use liquid index products such as U.S. equity index futures and SPY and QQQ ETFs, have increased their exposure to U.S. equities rather than reducing it. This is demonstrated by a higher level of U.S.

Retail investors appear to have purchased stocks during the 5-6% market dip in April, which may have been partly triggered by the profit-taking actions of equity-focused hedge funds.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.

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