Mega-cap tech stocks remain the cornerstone of hedge funds’ top 20 equity positions, according to a report by MarketWatch citing recent analysis of 332 money managers with in excess of $1bn in AUM. The analysis, based on recent public filings, reveals that the “Magnificent Seven” tech giants hold the top six spot in hedge funds’ equity portfolios, with Amazon.com the most widely held stock, followed closely by Microsoft, Apple, Meta Platforms and Alphabet’s Class A shares. Notably, the past month saw new entrants among the most commonly held stocks by hedge funds, including Spotify Technology, Thermo Fisher Scientific, GE Vernova and Adobe. Despite tech stocks’ prominence in hedge fund portfolios though, the funds remain underweight in the sector compared to the broader S&P 500 index, which is increasingly dominated by leading tech companies. Currently, tech stocks account for 16% of hedge funds’ portfolios, whereas they represent 30% of the S&P 500 index by market value.