Hedge funds currently hold a near-record number of technology stocks in their portfolios, according to an analysis by Wall Street investment bank Goldman Sachs (GS).
Technology stocks continued to be snapped up by hedge funds over the past week even as prices move higher and valuations become inflated.
In fact, Goldman Sachs says that hedge funds are currently buying technology stocks at the fastest pace in nearly three months.
A hedge fund is an investment firm that pools capital from institutional investors and high-net-worth individuals.
Currently, hedge funds are interested in stocks of microchip manufacturers such as Nvidia (NVDA) and Advanced Micro Devices (AMD), according to Goldman Sachs.
At the same time, hedge funds continue to avoid software stocks such as Salesforce (CRM) and Adobe (ADBE) over concerns their businesses could be disrupted by artificial intelligence (A.I.).
The analysis by Goldman Sachs shows that hedge funds are buying technology stocks in every major region of the world except Europe.
Hedge funds have also put on long positions related to technology stocks, which are bets that the share prices will rise.
Bets on information technology stocks now ?hover at record highs dating back to 2016, when Goldman Sachs began tracking the trades of leading hedge funds.
GS stock has risen 62% in the last 12 months to trade at $996.73 U.S. per share.
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