Technology stocks were a top pick for hedge funds last week, with buying at the fastest pace in nearly three months, according to a Goldman Sachs note.
Companies benefiting from AI developments, especially semiconductors, have avoided the negative impact of the Iran war on the global economy.
Here’s how hedge funds bet on AI optimism:
• Tech stocks were bought in every major region except Europe.
• Buying was led by North America and emerging Asia in dollar terms.
• Hedge funds bought back stocks to close short positions.
• They added long positions, expecting price gains.
• Semiconductors and software companies were bought; communications equipment and IT services were sold.
Hedge fund tech holdings are at their largest relative to the MSCI world index in over five years.
