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Hedge Funds Reduce Exposure to Tech Giants Amid Market Volatility
17 Nov
Summary
- U.S. stock indexes down on Friday
- Hedge funds cut stakes in 'Magnificent Seven' stocks like Nvidia, Amazon
- Funds shift to application software, e-commerce, and payments companies
On November 17, 2025, the U.S. stock market experienced a slight downturn, with the S&P 500 and Nasdaq 100 futures both falling 0.1%. The S&P 500 index closed 3.38 points lower at 6,734.11, while the Dow Jones Industrial Average dropped 309.74 to 47,147.48. The Nasdaq composite, however, rose 30.23 to 22,900.59.
Regulatory filings from Friday revealed that Wall Street's largest hedge funds have been shifting their focus away from the so-called "Magnificent Seven" tech stocks, including Nvidia, Amazon, Alphabet, and Meta. Funds like Lone Pine Capital and Tiger Global significantly reduced their stakes in Meta Platforms, the parent company of Facebook, by 34.8% and 62.6%, respectively. Bridgewater and Coatue were also among the firms that cut their exposure to Nvidia.
Instead, these hedge funds have been taking new positions in application software, e-commerce, and payments companies. This shift in investment strategy comes as the lofty valuations of Big Tech names have started to decline, following a boom in artificial intelligence-related valuations earlier in the year.
