Hedge Funds Cut Magnificent Seven Longs As AI Debt Risks Come Into Focus

(MENAFN- ValueWalk) Hedge funds kept artificial intelligence at the center of their portfolios in August, but the question changed. Instead of asking whether AI can generate revenue, managers increasingly focused on who will finance the infrastructure buildout and whether the cash flows will cover the debt behind it.

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Apple And Alphabet Fall Below Parity AI's Funding Question Reaches Hedge Fund Portfolios Semiconductor Sentiment Softens Amazon And Microsoft Lead North American Longs GE Vernova Tops The Large-Cap Short List Methodology

That shift showed up in the breadth of ownership. None of the Magnificent Seven recorded an increase in long fund participation during August, according to Data Insights, a division of Hazeltree. Microsoft and Nvidia saw only modest declines, while Amazon, Tesla, Meta Platforms, Alphabet and Apple had more meaningful reductions.

On the short side, participation increased in Amazon, Alphabet and Apple and rose more moderately in Meta. Nvidia was the only member of the group to...

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