Hedge fund net exposure to Magnificent 7 hits record 22%

The signal here is positioning, not fundamentals: hedge fund crowding in the same handful of mega-cap names has reached a new high, and the comparison with the 2022 trough shows how far the trade has travelled in the other direction. That concentration matters beyond equities, since the item ties a reversal in these names to S&P 500 perpetual futures and to bitcoin through weaker risk appetite. Whether exposure keeps building or starts unwinding is the open question, and it is the one that would transmit stress across markets.