Hedge funds have been known to favor the momentum and growth factors often, but at the end of 2023, long hedge fund portfolios had a record tilt toward momentum and the largest tilt toward growth since 2016. Meanwhile, gross leverage continued to climb, hitting new record highs.
However, despite the record momentum tilt, the factor began to unwind sharply late in the year, inspiring fund managers to diversify their portfolios.
Still favoring six of the Magnificent Seven
In its quarterly "Hedge Fund Trend Monitor," Goldman Sachs said that except for Tesla, the Magnificent Seven stocks accounted for six of...
