Shares of some of the major players in the booming technology sector have been hedge fund favorites since the pandemic, owing to these companies’ consistent product innovations and robust financials. And because the stock market is expected to remain highly volatile in the near term, we expect established tech players Apple (AAPL), Microsoft (MSFT), Alphabet (NASDAQ:GOOGL), Facebook (NASDAQ:FB), and Adobe (NASDAQ:ADBE) will continue to attract the interest of hedge funds. Read on.High demand for advanced technology products and solutions and an accelerated pace of digital transformation across almost every industry have helped well-established tech companies to generate rising sales and earnings since the onset of the COVID-19 pandemic. As a result, hedge funds have invested heavily in the shares of these companies and gained significantly. In 2020, global hedge funds gained roughly 12%, their most substantial full-year returns since 2009.
Even as concerns over rising inflation and the resurgence of COVID-19 cases have been leading to significant market volatility lately, hedge funds are expected to continue betting on winning tech stocks that are relatively safer investment propositions considering the increasing demand for advanced tech products.
Hence, we think the shares of top hedge fund picks Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (GOOGL), Facebook, Inc. (FB), and Adobe Inc. (ADBE) should continue soaring in price with their continued uptake by hedge fund managers.