Are Hedge Funds Falling Out of Love with the Mag7?

TL;DR: TODAY’S EDITION

• Hedge funds have been net sellers across all Magnificent 7 stocks in Q1.

• Apple and Amazon are seeing the biggest dumping — over 100 million Apple shares sold.

• Even Nvidia, the AI poster child, is seeing profit-taking with a net –76M share change.

• Microsoft remains the most widely held at 43%, but even that is down.

MAG7 VS. HEDGE FUNDS

🧠 What’s Going On with the Mag7?

We dug through the filings of 2,500 hedge funds in Q1 2025 and discovered something surprising:

The stocks that fueled the 2023/24 rally — Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla — are quietly getting trimmed down.

The Mag7 might be dominating headlines, but hedge funds? They’re starting to say, “Thanks for the gains… now we’re moving on.”

📊 The Big Picture: Hedge Funds Are Selling

Across all 7 stocks, selling outweighs buying by a mile.

• Hedge funds sold hundreds of millions of shares in total.

• Even the strongest names (Microsoft, Nvidia) aren’t immune.

• Apple is the hardest hit with –103M shares dumped.

• The rotation is clear: less Big Tech exposure, more… something else.

Let’s look at the Q1 2025 data:

🍏 Apple (AAPL) – Hedge Funds’ Biggest Dump

• 40.5M bought vs. 143.6M sold.

• Net: –103M shares.

• Buy/sell ratio: 0.28 — the weakest of all Mag7 names.

🛒 Amazon (AMZN) – Trimming Post-Rally

• 54M bought vs. 137.7M sold.

• Net: –83.6M shares.

🔍 Alphabet (GOOGL + GOOG) – Both Share Classes Hit

• GOOGL: 44.1M bought vs. 70.9M sold (–26.7M net).

• GOOG: 20.7M bought vs. 44.4M sold (–23.7M net).

• Combined: –50.4M shares.

🖥 Nvidia (NVDA) – The AI Darling

• 86.8M bought vs. 163.3M sold.

• Net: –76.5M shares.

💼 Microsoft (MSFT) – Still the Favorite, But…

• Held by 43% of hedge funds (the highest).

• 37.8M bought vs. 44.6M sold.

• Net: –6.8M shares.

🚗 Tesla (TSLA) – Still the Odd One Out

• Held by just 22% of hedge funds.

• 18.9M bought vs. 21.6M sold.

• Net: –2.7M shares.

🤔 What Does It Mean?

This data tells a clear story:

• Hedge funds are trimming big tech, especially Apple, Amazon, Alphabet, and Nvidia.

• It’s not panic — it’s profit-taking and sector rotation.

• Retail investors who blindly chase the Mag7 might miss where the real “smart money” is moving next.

🚀 Want to Know Where the Smart Money Is Moving?

With SmartMoney Premium, you get:

• Top 20 hedge fund portfolios based on 3-, 5-, and 7-year returns.

• Updates on where capital is flowing — before the headlines.

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