Underweighting the Magnificent Seven Paid Off for These Funds
Only 9% of global stock funds outperformed last year while underweight the group
This article is for subscribers only.
Investments ranging from gold to European banks helped a handful of global fund managers beat the market last year even while largely avoiding the richly valued Magnificent Seven stocks.
The seven account for about 20% of the MSCI All-Country World Index, a benchmark for global investing, and the group soared last year, led by Nvidia Corp. and Meta Platforms Inc. So the odds were stacked against any stock pickers who held a lower percentage of the Magnificent Seven than their index weight.