BALTIMORE (Stockpickr) -- Hedge funds are on a tech buying spree in 2014. No, I don't mean that fund mangers are taking the day off on Friday so they can be home when their new iPhones get delivered. Instead, it's a small group of big tech stocks that are getting hedge fund money thrown at them.
In fact, only two sectors saw real conviction buying from institutional investors last quarter: consumer staples and technology.
It's not surprising that institutional cash mostly made the biggest bets on large-cap tech stocks, but some of their favorite names in the sector are a little surprising. So, which names are pro investors piling into? And which still make sense to buy now?
Today, we'll answer both of those questions by peeking at the latest round of 13F filings.
Institutional investors with more than $100 million in assets are required to file a 13F, a form that breaks down their stock positions for public consumption. From hedge funds to mutual funds to insurance companies, any professional investors who manage more than that $100 million watermark are required to file a 13F.
In total, approximately 3,800 firms file 13F forms each quarter, and by comparing one quarter's filing to another, we can see how any single fund manager is moving their portfolio around. While the data is generally delayed by about a quarter, that's not necessarily a bad thing – research shows that applying a lag to institutional holdings can generate positive alpha in some cases. That's all the more reason to crack open the moves being made with pro investors' $20.5 trillion under management.
Today, we'll focus on hedge funds' 5 favorite tech stocks.
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