Bank of America survey: Fund managers are increasing their holdings of technology stocks, but the seven giants are seen as crowded trades.

In its December survey of European fund managers, Bank of America Merrill Lynch stated that despite investors claiming that trading in the "Big Seven" companies - Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla - is becoming crowded, fund managers are still increasing their allocation to tech stocks. The surveyed managers were net overweight tech stocks by 21%, an increase of 12 percentage points from the previous month, marking the largest rotation into tech stocks since July 2024. At the same time, 54% of fund managers stated that "being long the Big Seven" is currently the most crowded trade. Global fund managers are underweight the energy sector more than any other stock sector, with a net underweight of 26% this month.