Last week's rise in technology stocks driven by risk appetite was not missed by hedge funds.GameandcryptoTheir buying rate is the highest in more than a year.
Net purchases of technology stocks last week reached their highest level since December 2022, as long positions and short covering increased, according to data from Goldman's prime brokerage business.
Hedge funds became net buyers of the sector for the fourth week in a row, while the S & P 500 information technology index fell for most of April on concerns about high interest rates. Hedge fund buying looks prescient as last week's results from Google's parent company Alphabet and Microsoft boosted investor optimism about the fundamentals of the technology industry.
"the long-term potential of technology stocks is very clear and almost indisputable," said Seema Shah, chief global strategist at Principal Asset Management. However, with valuations so high, many investors have recently been reluctant to increase their exposure. Recently, the valuation has been adjusted slightly, providing an opportunity to enter the market. "
Although almost all technology sub-industries have received capital inflows, the largest number of inflows have been made to semiconductor and semiconductor equipment companies. According to Goldman Sachs, the allocation of hedge funds in this sub-industry has increased from 1. 5% at the beginning of this year.Gameandcrypto.1% jumped to 4.4%, the highest level in more than five years.
Last week hedge funds bought net US stocks at their fastest pace in about five months. The S & P 500 posted its biggest weekly gain since 2024, within striking distance of 5100.
