Large-cap mutual funds just flipped from overweight to underweight on AI stocks—now sitting 1.75 percentage points below their benchmarks. That's the biggest underweight position on record.
Mid-2024? They were 0.40 points overweight. Now they're backing off.
This excludes the obvious names: $MSFT, $NVDA, $GOOGL, $META, $AMZN, $AVGO.
AI exposure in these funds: 13.0% vs 14.8% in benchmarks. Both were around 6.5% in Q3 2024.
Institutional money is underexposed to AI right now. Either they're being cautious after the run-up, or they're missing the next leg. Time will tell which.
Mid-2024? They were 0.40 points overweight. Now they're backing off.
This excludes the obvious names: $MSFT, $NVDA, $GOOGL, $META, $AMZN, $AVGO.
AI exposure in these funds: 13.0% vs 14.8% in benchmarks. Both were around 6.5% in Q3 2024.
Institutional money is underexposed to AI right now. Either they're being cautious after the run-up, or they're missing the next leg. Time will tell which.
