For years now hedge funds, institutions, and retail investors have been loading up the shares of a very small sliver of the stock market. The shares I’m referring to are the so-called FAANG stocks, and others like them. FAANG stands for Facebook, Apple, Amazon, Netflix and Google (now known as Alphabet).
As the valuations of these stocks have pushed their company market shares ever higher, they have become a disproportionately large slice of the various indices they are included in. (Read more here and here).
But now it appears that some hedge funds have tired of buying the FAANGs and are instead looking for greener pastures elsewhere in the market.
Simone Foxman and Brandon Kochkodin report in Bloomberg:
Hedge funds have adored the FAANGs for so long it’s no wonder that two of them — Apple Inc. and Facebook Inc. — are losing their appeal.
Ken Griffin’s Citadel sold 3.4 million shares of Apple, the majority of its stake. And Viking Global Investors, led by Andreas Halvorsen, shed 9.6 million shares of Facebook, or most of its holding. These are just two tidbits from the fire-hose of data hedge fund managers disclosed Monday in 13F filings, due 45 days after the end of each quarter.
Read more here.