Key insights
- Hedge funds increased long positions in mega-cap tech stocks like Meta and Amazon in April, while maintaining strong long positions in the semiconductor sector, particularly Nvidia, Broadcom, and Lam Research. This indicates continued confidence in these companies' fundamentals and suggests a potentially bullish outlook for these stocks and the broader tech sector.
LONDON, May 20 (Reuters) - Hedge funds stuck to their holdings in companies with strong fundamentals in April, particularly technology and semiconductor stocks, according to a report on Wednesday from data platform Hazeltree, in a month when the S&P 500 jumped over 10%.
Here are the details about hedge fund positioning in April:
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Among mega-cap stocks, Meta and Amazon.com experienced more than a 5% month-over-month increase in the number of funds holding long positions, Hazeltree said
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Nvidia experienced a 4.5% decline, but remained a favourite long in the semiconductor sector
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The share of companies in the Philadelphia Semiconductor Index in which hedge funds hold net long positions rose to 57% in April from 53% in March
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Crowding in the U.S. semiconductor sector remained most pronounced on the long side in Nvidia, followed by Broadcom and Lam Research
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On the short side, ON Semiconductor was the most crowded name, followed by Microchip Technology and Monolithic Power Systems