economy
Goldman Sachs says hedge funds are ‘doubling down’ on AI but dumping software stocks
Hedge funds and mutual funds moving toward semiconductors with some shared favorites
TL;DR
- Hedge funds are significantly increasing their investment in semiconductor stocks, reaching record portfolio weight, driven by AI trends.
- Software stocks have seen their lowest weighting in hedge fund portfolios since 2019.
- Mutual funds are also shifting towards semiconductors, with specific additions like Intel Corp and SiTime Corp.
- Several stocks, including Boeing, Mastercard, Marvell Technology, and Visa, are popular holdings for both hedge funds and mutual funds.
- Mutual funds have increased cash allocations due to geopolitical tensions, while hedge funds have raised net exposure.
- A majority of mutual funds have underperformed market benchmarks in the second quarter.