While hedge funds started Q2 doubling down on artificial intelligence, boosting their net tilt toward information technology by 853 basis points, they slashed their exposures to software to the smallest weight since 2019. This leaves a key question up for debate. Is Microsoft (NASDAQ:MSFT) still a software stock? Apparently, there’s some disagreement on that.
Amazon owns the VIP list
Amazon (NASDAQ:AMZN) sat atop the VIP list from Goldman Sachs’ quarterly “Hedge Fund Trend Monitor” report for the 10th consecutive quarter, although it weighed on some funds’ portfolios during Q1. Egerton Capital reported in its Q1 2026 letter that the stock weighed most heavily on its portfolio in spite of the company’s solid earnings results. The fund actually trimmed its position in Amazon during Q1.
The ClearBridge Global Value Improvers fund said in its Q1 2026 letter that it is engaging with Amazon to focus on improvements in labor practices, safety and environmental efficiency.
Amazon founder Jeff Bezos unloaded more than 100 million shares of the company during Q1. Other sellers included Jeffrey Ubben’s ValueAct and BlueSpruce Investments. Bill Ackman’s Pershing Square snapped up more than 1.8 million shares.
Semis a major theme in Q1
Also on the VIP list were multiple semiconductor stocks, including NVIDIA (NASDAQ:NVDA), Taiwan Semiconductor (NYSE:TSM), Advanced Micro Devices (NASDAQ:AMD), Lam Research (NASDAQ:LRCX), Intel (NASDAQ:INTC) and Marvell Technology (NASDAQ:MRVL).
NVIDIA and TSM were among the Baron Durable Advantage Fund’s top performers during Q4 2025, according to the fund’s quarterly letter. TSM was one of Wedgewood Partners’ top performers in Q1 2026, although the fund trimmed the position into that strength.’
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