Hedge Funds Target Tech In Q2, Increasing Positions In Meta Platforms, Microsoft, Nvidia, Apple

New 13F filings show that hedge funds went tech-heavy in the second quarter as the sector continues to outperform.

What To Know: Investment managers filed their quarterly updates with the SEC this week. Tech remains in the crosshairs for hedge funds, with the Nasdaq Composite up more than 30% year-to-date and the Nasdaq 100 up a whopping 39%.

Meta Platforms Inc META saw the biggest increase by market value during the quarter, according to a Bloomberg analysis. Investment firms increased their positions by 5.7 million shares in total.

A total of 114 investment firms upped their positions in Meta. Arrowstreet Capital boosted its stake the most, adding 3.71 million shares. Renaissance Technologies also snatched up 2.62 million shares during the quarter.

Microsoft saw the next biggest increase during the quarter, as investment managers added 2.41 million shares, making it the most valuable holding at $33.02 billion. However, 165 investors trimmed or sold out of Microsoft during the quarter, the highest number among all the stocks analyzed.

On the flip side, 172 investors upped or initiated positions in Amazon.com Inc AMZN, making it the most crowded trade during the quarter. By value, Amazon didn't see the inflows that Nvidia Corp NVDA and Apple Inc AAPL saw. Investors added 6.59 million shares of Nvidia and 19.34 million shares of Apple during the second quarter.

Hedge funds also cut positions in several names. UnitedHealth Group Inc UNH, Alibaba Group Holding Ltd BABA, Intel Corp INTC and PayPal Holdings Inc PYPL saw the biggest decreases in overall market value.

At the end of the quarter, tech represented the largest weighting in investment managers' portfolios at 28%. Health care was the next biggest at 16%.

Photo: Shutterstock

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