Institutional portfolios will continue to underperform due to a lack of adequate exposure to Nvidia and other winning technology names, UBS warned.
Strategist Patrick Palfrey told clients that large-cap managers have 4.4% exposure to Nvidia, despite the artificial intelligence darling accounting for 6.6% of the S & P 500 .
That is the biggest underweight position ever in Nvidia, according to Palfrey.
As a result, "a continued TECH+ underweight is likely to remain a headwind for many portfolios," Palfrey wrote to clients.
The latest evidence came Tuesday as the S & P 500 hit a record high , boosted by a 4% rally in Nvidia as CEO Huang finished selling shares for the time being under a preset trading plan.
Persons:
Patrick Palfrey, Jensen, Palfrey, bode, Huang
Organizations:
Nvidia, UBS, Microsoft, Apple, Google