Hedge Fund Portfolio Updates by Jefferies

Jefferies released its latest hedge fund portfolio updates on Thursday, revealing that Amazon (NASDAQ:AMZN) remains the largest net weight in the portfolio.

As of August 31, Amazon constitutes 10% of the portfolio, making it the largest individual holding and exceeding its S&P 500 weight by 6.5%.

Meta (NASDAQ:META) follows, as hedge funds have significantly increased its share to 8.8%, indicating it as a high overweight position.

In contrast, Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA) are underweighted. Apple represents just 2.2%, which is 4.7% below its S&P 500 weight. Tesla has a net short of -2.5%, or 3.8% below the S&P 500 weight.

Overall, hedge funds show increased exposure to the “Sweet 16” stocks, which now represent a record 49.7% of total holdings. The net weight increased from 45.7% to 49.7%, marking the largest overweight by 14.6% in the dataset.

In addition to AMZN and META, significant net weighting in hedge fund portfolios includes Netflix (NASDAQ:NFLX) and Microsoft (NASDAQ:MSFT) at 7.8% and Nvidia (NASDAQ:NVDA) at 5.5%.

Despite increasing their “Sweet 16” holdings, hedge funds trimmed their Secular Growth allocation by 1.8%, bringing it down to 61.5% of the portfolio. This shift indicates a preference for Cyclicals, which grew by 1.6%, while Bond Proxies remained net short at over 8%.

The Health Care sector, part of Secular Growth, experienced a decline to 15.7% from 21.4%, amid recent volatility. Technology also decreased by almost 3% and is now underweight relative to the S&P 500 by over 700 basis points, the lowest since April 2023.

Conversely, Communication Services increased by 1.8%, becoming the portfolio's largest overweight at 13.5%.