Known for their recent less than sterling performance, hedge funds partly redeemed themselves in the 4Q of 2018. Smartly catching tech stocks as they sunk to their lowest points in recent months, hedge funds were able to cash in on that sectors happy double-digit resurgence.
The most-owned stock for the largest of the alternative funds was Facebook, which occupied 15% of the 50 largest hedge funds bets, compared with only 6% in the 3Q of 2018. Next in line were Microsoft with 14%, Alphabet (Google) with 13%, Amazon with 12% and Alibaba (China on-line giant) with 9%. There were all holdings that grew from 3Q to 4Q, except for Microsoft, whose share percentages fell from 21% to 14%.