Big investors may be taking the money and running when it comes to some, though not all, heavyweight technology-related stocks right now, with Apple Inc. and Tesla Inc. topping a Jefferies list of the most underowned stocks right now.
The S&P 500 index
has nearly made up for a 19% loss in 2022, with a 15% gain so far this year. That’s been driven by tech stocks, with the Nasdaq Composite
up 30% to date in 2023, versus a 33% loss in 2022. But the Nasdaq recently capped its worst two-week stretch since December, weighed down in part by rising bond yields.
Apple is up 36% since the start of the year, while Tesla has climbed 89%. Both have more than recouped 2022’s losses. Warren Buffett’s Berkshire Hathaway
ranked as the No. 5 most underowned company on the Jefferies list.
Jefferies offered a separate breakdown for the most underowned stocks among global hedge funds. They source that information MSCI Hedge Platform, a database that collects holdings data of hedge funds directly from administrations rather than quarterly 13F filings. Tesla and Apple were again at the top, along with Ford
As for overowned stocks, Alphabet
and Meta Platforms
were at the top of a list of 20 names held by U.S. long-only funds, with Netflix
also in the top five. Meta has surged 150% this year, while Alphabet has gained 47% and Netflix 43%.
Among global hedge funds, Microsoft
Meta and Nvidia
were the top three overowned names, followed by Amazon.com
and Activision Blizzard
Nvidia stands out in that group with a gain of 200% this year, amid a clamor for artificial-intelligence-related holdings.
For those investors growing wary of sticking with tech stocks, and maybe feeling that it’s time to cash in on their recent winnings, Bank of America’s August global fund managers’ report revealed that a bullish position in tech stocks was the most crowded trade for a fifth straight month:
That report also revealed that fund managers are the least bearish they’ve been in over a year, viewed as a contrarian indicator for investors.