Institutional investors revealed a cautious approach to tech favorites in their quarterly 13F filings, with few big bets in either direction. A Reuters analysis of the filings from 6,371 pension funds, hedge funds, wealth managers, and other institutional investors showed a narrow gap between the number of investors increasing their positions and those reducing them.

Tech Stocks

Nearly 44% of filers reviewed trimmed their holdings of the Magnificent Seven group of megacap tech firms, such as Microsoft and Meta Platforms, while 42% initiated or expanded their holdings of this group. The filings are for the quarter through June 30.

Investors do not disclose the reasoning for their position changes. However, some market participants said the data might say more about the extent to which many institutions have already built up positions in these market segments than about their fundamental outlook for these entities.

AI and Semiconductor Stocks

Institutional investors still displayed a bullish tilt toward semiconductor names as of the end of the second quarter, with 48% of funds that had filed with the SEC by early afternoon being net buyers and only 34.5% being net sellers. A similarly narrow gap is evident with respect to a group of 20 major software companies, including Adobe and Datadog.

Investors displayed a bias for building their stakes in AI-themed stocks during the second quarter, with 36% of all institutions that have so far filed their 13F documents disclosing they were net buyers of companies such as CoreWeave, Arista Networks, and Broadcom.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.