(HedgeCo.Net). According to recent regulatory filings, many of Wall Street’s largest hedge funds cut back on their exposure to mega-cap technology names — including Nvidia, Amazon, Alphabet, and Meta Platforms — in the third quarter of 2025. Reuters+1

Instead, these funds shifted allocations toward sectors such as application software, e-commerce, and payments, reflecting a broader re-balancing as tech valuations come under pressure. Reuters+1

This pivot may indicate a growing wariness among hedge funds about overconcentration in the “Magnificent Seven” and a desire to rotate into what they view as more promising — or less frothy — segments of the market.