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Goldman Says Hedge Funds Back Betting Big on Megacap Tech Stocks

  • Average fund’s weight in top 10 positions rose to 70%
  • Amazon supplanted Microsoft as the most popular long position
Updated on

Hedge funds ramped up bets on megacap US tech stocks and whittled down overall holdings to focus on favored names last quarter, with conviction climbing back to levels seen at the start of the pandemic, according to Goldman Sachs Group Inc.

The funds boosted tech and consumer discretionary holdings, while cutting energy and materials wagers, strategists including Ben Snider wrote in a note Tuesday. Separately, average weightings of top 10 holdings jumped to 70% in the three months ended June, the highest concentration since the first quarter of 2020.