Synopsis
Hedge funds maintained their focus on companies with strong fundamentals in April, particularly in technology and semiconductors, as the S&P 500 saw a significant jump. Meta and another unnamed mega-cap stock experienced increased fund holdings, while Nvidia, despite a slight decline, remained a top semiconductor pick.Listen to this article in summarized format
Here are the details about hedge fund positioning in April:
Among mega-cap stocks, Meta and Amazon.com experienced more than a 5% month-over-month increase in the number of funds holding long positions, Hazeltree said.
Nvidia experienced a 4.5% decline, but remained a favourite long in the semiconductor sector.
The share of companies in the Philadelphia Semiconductor Index in which hedge funds hold net long positions rose to 57% in April from 53% in March.
Crowding in the U.S. semiconductor sector remained most pronounced on the long side in Nvidia, followed by Broadcom and Lam Research.
On the short side, ON Semiconductor was the most crowded name, followed by Microchip Technology and Monolithic Power Systems.
