HEDGEFLOW Hedge funds hunt new ‘magnificent’ tech stocks :

Morgan Stanley (MS.N) reported that global hedge funds had reduced their exposure to so-called Magnificent 7 stocks and increased their allocation to technology, media, and telecommunications companies (TMT).

‘magnificent’ tech stocks :

The market rallied last year thanks to the seven stocks that made up the Magnificent Seven: Nvidia, Apple (AAPL.O), Tesla, Alphabet Inc. (GOOGL.O), Meta Platforms, Amazon.com (AMZN.O), and Microsoft.

They are among the best bets on the market. The majority of stocks continue to show gains, but Tesla and Apple have fallen by roughly 12% and 3%, respectively.

Morgan Stanley’s prime broker content team, who provide financing services to institutions investors, stated that hedge funds added long positions in TMT every session since the start of the year. This trend has accelerated most recently. The bank describes this as an “expansion” effect.

The bank’s exposure to TMT stocks outside the Magnificent Seven is nearing record low levels.

Bets on TMT stocks were spread across several sectors.

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