Recent analysis indicates a notable shift in hedge fund strategies regarding technology investments. According to Goldman Sachs, hedge funds and mutual funds have reduced their exposure to mega-cap technology stocks at the start of the third quarter of 2024. This marks the first decline in the weight of the so-called 'Magnificent 7'—a group of leading tech companies—in hedge fund long portfolios since 2022. Despite this reduction in exposure, the Information Technology sector has shown strong performance, with a year-to-date increase of 28.4% and a remarkable 645% rise since 2013. On August 27, 2024, the sector's average constituent return was reported at +0.75%. Meanwhile, the Financials sector has gained momentum, now ranking third year-to-date, although it still trails Utilities slightly month-to-date. In contrast, small-cap stocks have underperformed, with the Russell 2000 Value index being the worst performer year-to-date.