Goldman Sachs: "Hedge funds are abandoning the big names in technology"

Hedge funds are moving away from the stocks of big technology companies, which were the engine of the market last year, according to Goldman Sachs, writes Business Insider.

According to the bank, the first week of the year was the third in a row in which hedge fund managers gave up shares of big names in information technology, strategists attributing sales to those funds that "seek reduced exposure to technology giants", the publication also notes mentioned.

"The overall exposure of infotech equity funds is nearing its lowest level in five years," according to Goldman Sachs.

The so-called "magnificent seven" group of Apple, Microsoft, Alphabet (Google's parent company), Amazon, Nvidia, Meta Platforms (formerly Facebook) and Tesla have been at the forefront of the excitement created by artificial intelligence, which which fueled the rise of the S&P 500 last year.

But the start of the year has been weak, as investors fear that the profits of the big names in tech will not be able to keep up with their high valuations. In the first week of the year, Apple lost more than $100 billion in market capitalization as iPhone sales fell in China, while Tesla shares fell 4 percent as the company lost its position as the biggest seller of electric vehicles in China. world in front of the Chinese from BYD. On Monday the market had a recovery movement.

Also, according to Goldman, in the period after Christmas, hedge funds sold shares of consumer discretionary companies, with the sector registering "the largest net sale since September".

Last year, the S&P 500 index appreciated by 24.2%, with "magnificents" having strong increases. Apple shares rose 48%, ending the year with a market capitalization of nearly $3 trillion, while Microsoft shares rose 57%, giving the company a market valuation of $2.79 trillion. Google shares rose 58% ($1.75 trillion market cap), Amazon's stock rose 81% ($1.57 trillion market cap), while Nvidia shares rose 239% ( capitalization 1.22 trillion dollars). Meta shares appreciated 194% ($0.91 trillion market capitalization), and Tesla's rose 102% ($0.79 trillion market capitalization), according to Investors Daily Business.