Key Takeaways
- • Hedge funds increased long exposure to several Magnificent Seven stocks in September, led by Alphabet, according to Hazeltree's latest Crowding Report from its Data Insights division.
- • Alphabet's long-to-short fund count ratio recovered above 1.0x after falling below that level in August, while Tesla's ratio fell to 0.54x, its lowest level of 2026.
- • Apple and Tesla were the only Magnificent Seven stocks with more short than long fund holders at month-end.
- • Net long positioning across the PHLX Semiconductor Sector Index rose to 76.7% from 73.3% in August.
- • Broadcom's net long exposure jumped from 34.1% to 54.1%, with its long-to-short fund count ratio rising from 1.79x to 2.53x as funds bought the share price weakness.
Summary
Hedge funds increased their long exposure to several Magnificent Seven stocks in September, with Alphabet recording the most notable gain, according to the latest Crowding Report from Hazeltree's Data Insights division. Alphabet saw a moderate increase in the number of funds holding long positions, while Meta, Microsoft, Nvidia and Amazon posted smaller gains. Apple and Tesla registered declines in long holders. On the short side, Meta and Tesla saw notable increases in fund participation, while Microsoft recorded a moderate rise. Short positioning declined across Nvidia, Amazon, Alphabet and Apple.
The shifts came against a backdrop of rising bond yields and inflation concerns linked to higher energy prices. According to the report, equity market gains in September were concentrated in a narrow group of AI-related mega-cap technology stocks. Tim Smith, Managing Director of Data Insights at Hazeltree, said that "rising interest rates and inflation concerns both contributed to market volatility." He added that hedge funds used weakness in Broadcom's share price to rebuild long exposure during the month.
Alphabet's long-to-short fund count ratio recovered above 1.0x after falling below that level in August. Apple and Tesla remained the only Magnificent Seven stocks with more short than long holders. Tesla's ratio dropped to 0.54x, its lowest level of 2026.
Positioning in semiconductors also turned more bullish. The share of constituents in the PHLX Semiconductor Sector Index exhibiting net long positioning increased to 76.7%, from 73.3% in August. Broadcom recorded one of the largest shifts, moving from short-biased to long-biased positioning, with net long exposure rising from 34.1% to 54.1% and its long-to-short fund count ratio climbing from 1.79x to 2.53x. Applied Materials remained the most crowded semiconductor long, followed by Nvidia and Broadcom. Teradyne was the most crowded short, ahead of ON Semiconductor and Advanced Micro Devices.
The report analyses anonymised positioning data covering approximately 16,000 securities and more than 700 global hedge funds across the Americas, EMEA and APAC.
The shifts came against a backdrop of rising bond yields and inflation concerns linked to higher energy prices. According to the report, equity market gains in September were concentrated in a narrow group of AI-related mega-cap technology stocks. Tim Smith, Managing Director of Data Insights at Hazeltree, said that "rising interest rates and inflation concerns both contributed to market volatility." He added that hedge funds used weakness in Broadcom's share price to rebuild long exposure during the month.
Alphabet's long-to-short fund count ratio recovered above 1.0x after falling below that level in August. Apple and Tesla remained the only Magnificent Seven stocks with more short than long holders. Tesla's ratio dropped to 0.54x, its lowest level of 2026.
Positioning in semiconductors also turned more bullish. The share of constituents in the PHLX Semiconductor Sector Index exhibiting net long positioning increased to 76.7%, from 73.3% in August. Broadcom recorded one of the largest shifts, moving from short-biased to long-biased positioning, with net long exposure rising from 34.1% to 54.1% and its long-to-short fund count ratio climbing from 1.79x to 2.53x. Applied Materials remained the most crowded semiconductor long, followed by Nvidia and Broadcom. Teradyne was the most crowded short, ahead of ON Semiconductor and Advanced Micro Devices.
The report analyses anonymised positioning data covering approximately 16,000 securities and more than 700 global hedge funds across the Americas, EMEA and APAC.
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