According to Goldman Sachs, hedge funds have reached the highest recorded weight in semiconductor stocks while reducing their exposure to software to the lowest level since 2019. This analysis, conducted by strategists led by Ben Snider, is based on fund filings as of May 18.
Notably, hedge funds have increased their positions in companies like Lam Research Corp, Applied Materials Inc, and ASML Holding, while mutual funds have favored Intel Corp and SiTime Corp.
Shared popular holdings between both fund types include Boeing Co., Mastercard Inc., Marvell Technology Inc., and Visa Inc., which have collectively outperformed the S&P 500 by 3 percentage points, achieving a 10% return year-to-date. The report also highlights that U.S. equity hedge funds have benefited from a market rebound, returning 7% year-to-date through May 21.
In contrast, mutual funds are struggling, with only 30% surpassing their benchmarks, below the historical average of 37%. Despite increasing cash allocations slightly from a record low of 1.1% to 1.4%, mutual funds still maintain low cash balances relative to historical norms.
This analysis encompasses over 1,050 hedge funds with $4.6 trillion in gross equity positions and more than 500 large-cap active mutual funds managing $3.9 trillion in equity assets