Mutual Funds May Be Over Those Big FANG Names, Goldman Data Show

(Bloomberg) -- The hedge-fund love affair with megacap tech may still be raging, but it looks like actively managed mutual funds have grown less fond of the group.

“Facebook, Amazon, Apple, Microsoft and Google were five of the six stocks with the largest declines in fund positioning last quarter,” Goldman Sachs strategists led by Ben Snider and David Kostin wrote in a note.

All told, large-cap mutual funds reduced exposure to the so-called FAAMG cohort, according to data compiled by Goldman Sachs Group Inc. on its mutual fund clients as of Sept. 30, but information technology shares at large still make up most of their holdings. That’s helped almost half of the funds beat their benchmarks this year, a pace that would amount to their strongest yearly performance since 2009.

Mutual Funds May Be Over Those Big FANG Names, Goldman Data Show

Apple is now the most underweight stock among large-cap mutual funds, they said. Holdings of Alibaba, on the other hand, got one of the largest boosts, helping funds beat their passive benchmarks this year.

Funds added the most money to:

  • Chevron
  • AT&T
  • Alibaba
  • General Electric
  • Philip Morris International
  • Berkshire Hathaway
  • Johnson & Johnson
  • Merck
  • Altria
  • J.M. Smucker

Funds decreased their positions most in:

  • Apple
  • Alphabet
  • NXP Semiconductors
  • Facebook
  • Microsoft
  • Walt Disney
  • Home Depot
  • Comcast
  • Charles Schwab

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