Goldman Says Hedge Funds Cut Magnificent Seven, Bought China Stocks

Hedge funds cut their holdings of the so-called Magnificent Seven technology stocks while increasing exposure to Chinese companies listed in the US during the first quarter, according to Goldman Sachs Group Inc. strategists.

Funds increased their investments in Chinese firms’ American depository receipts despite heightened trade tensions, strategists including Ben Snider wrote in a note dated May 20. The most popular ADRs held by hedge funds include Alibaba Group Holding Ltd., PDD Holdings Inc, and Baidu Inc, the note said.