Hedge funds' Q3 new trend: reducing holdings in technology stocks.

Technology stocks have stopped rising, and hedge funds are starting to adjust their positions. As the rise of the US stock market expands and the Federal Reserve begins a cycle of interest rate cuts, fund managers are gradually pulling out of growth stocks and turning to sectors that will benefit from the rate cuts. Positioning files show that hedge funds in the third quarter have reduced their positions in tech giants such as Apple Inc. (AAPL.US) and Amazon.com, Inc. (AMZN.US). Arrowstreet Capital and Viking Global both sold more than 5 million shares of Amazon.com, Inc. stock; Warren Buffett's Berkshire Hathaway further reduced its position in Apple Inc. by about 25%, with a holding value of 70 billion USD. According to Bloomberg, hedge funds as a whole have reduced their holdings in Amazon.com, Inc. by 11 billion USD, bringing the total holding value to 34 billion USD, mainly due to net selling and a drop in stock prices. Signs indicate that the contribution of top technology stocks to the stock market's rise is decreasing. Thanks to strong earnings and rising expectations of a "soft landing" for the US economy, the S&P 500 index has risen by 5.5% since the third quarter, while the equal-weighted S&P 500 has almost doubled in growth - by comparison, the Nasdaq 100 index, represented by tech stocks, recorded a 1.9% increase, while Mag 7 has dropped by 4% compared to its peak in July. However, overall, technology stocks remain the top holding for hedge funds, with a position of 21%, followed by the financial industry at 15%, with the largest increase in position being in financial stocks. At the same time, hedge funds are also increasing their holdings in Chinese stocks. Scion Asset Management, under the prototype character of Michael Burry in the movie "The Big Short," further increased its holdings in Alibaba Group Holding Limited Sponsored ADR (BABA.US), Baidu Inc Sponsored ADR Class A (BIDU.US), and JD.com, Inc. Sponsored ADR Class A (JD.US), while also purchasing corresponding put options. StreetInsider reported that hedge fund giant David Tepper, who famously called for "buying China," increased his position in China by 12 percentage points to 38% in the third quarter, reducing Alibaba and increasing PDD Holdings Inc. Sponsored ADR Class A and JD.com, Inc. Sponsored ADR Class A. This article is reproduced from "Wall Street Seen", author: Li Xiaoyin; GMTEight editor: Yan Wencai.