By Nell Mackenzie
LONDON, May 25 (Reuters) – Technology stocks were a top pick for hedge funds last week, with speculators hoovering them up at the fastest pace in nearly three months, according to a Goldman Sachs note to clients late on Friday.
Companies that might profit in any way from developments in artificial intelligence, particularly semiconductor and chip manufacturing, have skirted the Iran war’s dour effects on the global economy.
Here is how hedge funds bet on AI optimism last week:
• Technology stocks were bought in every major region except Europe.
• Buying was led, in dollar terms, by North America and Asia emerging markets.
• Hedge funds bought back stocks to close previous positions that bet on a drop in those prices.
• They also put on so-called long positions, which assume those assets will gain in value.
• Speculators bought semiconductor-related manufacturers, as well as software companies.
• They sold communications equipment and IT services providers.
• Hedge fund portfolios hold their largest technology positions relative to the MSCI world index in over five years.
• Bets on global information technology stocks now hover at record highs dating back to 2016, when Goldman Sachs Prime Brokerage began tracking these trades
(Reporting by Nell Mackenzie; Editing by Amanda Cooper)
