Tech positioning cooled in July as net overweight fell to 18% from 26%, while more fund managers flagged an AI bubble as a top tail risk.
Global fund managers turned more cautious on technology in Bank of America's July survey, even as semiconductor stocks remained the market's most crowded trade. The poll found 82% of respondents viewed a long position in global semiconductors as the world's most crowded trade, a record reading. At the same time, net overweight in tech dropped to 18% from 26%. The July 2-9 survey covered 210 managers overseeing about $555 billion. It also showed 61% do not expect hyperscalers to cut 2024 capex, while 45% identified an AI bubble as a top tail risk, up from 28% in June.