The Smart Money Shuffle: Why Hedge Funds Are Dumping Tech and Loading Up on These Three Sectors

The fourth quarter 13F filing season has delivered its biggest surprise yet: the smart money is quietly orchestrating a massive sector rotation that could reshape portfolio allocation strategies for months ahead.

The Great Tech Exodus Accelerates

The most striking revelation from recent filings is how aggressively institutional investors continue to trim their mega-cap technology positions. Berkshire Hathaway's continued reduction of its Apple stake, selling another 41-42 million shares in Q3 and representing over a 15% reduction, signals a broader institutional wariness of stretched tech valuations.

Warren Buffett's team has now cut Apple by 6.7% to 280 million shares, yet the position still represents $57.4 billion and remains their largest holding. This disciplined profit-taking reflects a sophisticated understanding of position sizing and risk management that retail investors should note.

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