Hedge funds generally sold into the second-quarter strength, unloading shares of most Magnificent Seven stocks and reducing crowding. As a result, most funds were rewarded with healthy returns as they successfully navigated the summer volatility.
Magnificent Seven becoming less “magnificent”?
According to Goldman Sachs' latest "Hedge Fund Trend Monitor," funds turned against the momentum in the equity market during the first half of 2024, receiving resilient returns in exchange as the market tumbled in late July.
While funds trimmed their positions in all of the "Magnificent" mega-cap stocks during the second quarter, those stocks continued to outperform and remained...