Technology stocks remain incredibly popular in 2023 where many of the largest US investment funds are being blocked from buying more, due to diversification rules. The S&P500 index has grown 18% this year, however seven large technology stocks have accounted for the majority of the gains. For example, Fidelity’s $108billion Contrafund, could not buy any more shares in Meta, Berkshire Hathaway, Microsoft and Amazon as it made up a combined 32% of it’s portfolio. Blackrock’s Technology Opportunities Fund was also blocked from purchasing more Apple, Microsoft, and Nvidia.

If we were to analyse the hedge fund space, they also have a significant position within technology stocks. Below are the top 8 hedge funds in the world listed in order of their AUM, and names of each portfolio manager. The stocks listed below are the names of the 5 largest positions they hold in their portfolio in terms of weighting.

Apple and Microsoft are clearly a favourite amongst AQR Capital Management, DE Shaw and Two Sigma Advisers where it features in all of their top 5 stock positions, averaging a 3.13% weighting for Apple, and 2.5% weighting for Microsoft. Surprisingly Nvidia only featured as the top 5 investments for Two Sigma and DE Shaw only, whilst DE Shaw are also the only ones that have a significantly large position in Tesla. In terms of weighting across stocks on a fund level, Elliot Investment Management hold 62% of their position across 5 stocks, whilst Citadel only hold 5.33% of their entire portfolio across their 5 largest positions.

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