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UBS: Fund managers are now betting on these 10 stocks

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UBS: Fund managers are now betting on these 10 stocks

Fund managers expect a shift away from large-cap growth stocks. Costfoto/NurPhoto/Getty Images

After 14 months of dominance by growth stocks, some asset managers are seeing a change.

The fund managers have overweighted stocks in cyclical sectors such as industrials versus the S&P 500.

Here are ten stocks that are seeing growing interest among large-cap portfolio managers.

This is a machine translation of an article from our US colleagues at Business Insider. It was automatically translated and checked by a real editor.

Professional investors are increasingly skeptical about the market’s favorite stocks. Large-cap fund managers are starting to distance themselves from some of the largest companies in the S&P 500, according to a recent report from UBS. Sentiment for mega-cap technology companies like Microsoft, Alphabet, and Apple are deteriorating the fastest, the company said.

By shedding these three names and top performers like Nvidia, money managers are swimming against the tide. Big growth stocks have carried the market higher over the last year, so a move away from them now suggests that yesterday’s laggards may be tomorrow’s leaders.

If this bet is premature or completely wrong, active managers are sure to underperform the market. But in a sea of ​​mutual funds, successfully selecting unfamiliar stocks is a great way to stand out from the crowd. For this reason, large-cap stock pickers tend to skip the largest companies, according to UBS.

Compared to the S&P 500, large-cap portfolio managers have the lowest weighting in Apple, Nvidia and Tesla, UBS strategists led by Patrick Palfrey wrote in a statement from the end of February.

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In contrast, fund managers’ largest relative overweights are in sectors such as industrials, financials, healthcare and materials, Palfrey said.


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