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(Refiles to add HEDGEFLOW tag to headline)
By Carolina Mandl
NEW YORK (Reuters) - Global hedge funds have reduced their exposure to the so-called Magnificent Seven stocks while increasing their allocation to other technology, media and telecommunications (TMT) companies, according to Morgan Stanley.
Last year, the magnificent seven group of stocks -- Nvidia, Apple, Tesla, Google-parent Alphabet Inc, Meta Platforms, Amazon.com and Microsoft -- drove a market rally.
Individually, they soared between around 50% and 240% in 2023, making them among the market's most rewarding bets. Most continue to post gains this year, although Tesla and Apple are down roughly 12% and 3.5%, respectively.
Morgan Stanley's prime brokerage content team, which provides financing services to institutional investors, said hedge funds have added long positions to TMT each session since the beginning of the year, accelerating most recently, in what the bank calls as a "broadening" effect.
Overall, the bank said exposure to non-Magnificent Seven TMT stocks is close to record-low levels since 2020.
Software and semi-conductor stocks have been the most added sectors, while bets against TMT stocks are across different sectors.
(Reporting by Carolina Mandl, in New York)
