Hedge funds are holding most of their lengthy portfolios of their high 10 inventory positions, in line with information from Goldman Sachs in its “Hedge Fund VIPs” report, printed on Monday.
The brokerage’s information reveals that the common hedge fund is concentrating most of its funding on a sure variety of U.S. equities right this moment, greater than any time previously 22 years, Bloomberg reported.
The information is analyzed from 735 hedge funds with about $1.6T in lengthy fairness positions and $797B briefly positions.
Common funds maintain 70% of their lengthy portfolios of their high 10 positions, making them extra crowded than ever, the report mentioned. The most well-liked crowded shares stay mega-cap techs, equivalent to Meta Platforms (META), Microsoft (MSFT), Amazon.com (AMZN), and the remainder of the “Magnificent Seven,” which account for 14% of the common hedge fund lengthy portfolio.
That is twice the load of these holdings because the begin of the yr, in line with the report.
Pharmaceutical firm Eli Lilly & Co. (LLY), which produces U.S.-approved weight reduction drug Zepbound, was among the many shares with the best improve in hedge fund recognition final quarter, Bloomberg reported. The inventory is up greater than 64% year-to-date.
The Nasdaq Composite Index (COMP.IND) is up 37% year-to-date. The S&P 500 (SPY) can also be up 18.64% year-to-date.