Hedge funds loaded up on these 10 stocks last quarter

Reuters / Charles Platiau

Tech stocks have been on fire this year, and institutional investors have taken note.

According to data from Citi’s equity research group, tech stocks made up eight of the top 10 stocks held by the 50 largest hedge funds in the third quarter of 2017, with financials and healthcare close behind.

Despite the astronomic gains of stocks like Alphabet and Facebook, the aggregated Equity Hedge Fund Index has underperformed the the S&P 500 by 8.6 percentage points so far this year, Citi says. Hedge fund managers have also shifted away from less exciting sectors, like industrial stocks.

“Compared with last quarter, hedge fund top-10 holdings shifted away from Industrial and Utility names toward Information Technology, Consumer Discretionary and Materials stocks” writes Citi analyst Tobias Levkovich. “Additionally, hedge funds favored positions in ETFs and Energy in the third quarter while there was a decline in Financials, Telecommunication Services and Consumer Staples holdings.”

Here’s the full list: