Top Australian Pensions Cut US Tech Stocks Ahead of Rebound

Australian pension funds, among the country's largest, have reduced their holdings in major US tech stocks, including the so-called "Magnificent Seven" companies, ahead of the sector's recent rebound. This decision highlights the challenge these funds face in keeping up with the rapid growth driven by advancements in artificial intelligence (AI) and the broader tech-led bull market. The article suggests that the pension funds, which manage billions of dollars in assets, were unable to fully capitalize on the recent surge in these tech giants' valuations, potentially missing out on significant gains. The decision to trim exposure to the US tech sector may have been a cautious move, as these pension funds seek to balance risk and returns in their investment portfolios. However, the article suggests that navigating the highly volatile and rapidly evolving tech landscape remains a significant challenge for even the most sophisticated institutional investors.