<ul><li>Stock pickers are holding their smallest allocations of megacap names such as Apple and Nvidia since the global financial crisis, boosting their funds’ performance in a year that has kicked off with a slide in technology shares.</li><li>The under-allocation of active fund managers to large tech companies has turned out to be a blessing as these stocks have faltered in 2025. Nearly 49% of actively managed mutual funds and exchange-traded funds comparing themselves to the S&P 500 are outperforming the index this year.</li><li>High levels of market concentration hurt performance comparisons for stock pickers. Just 10 companies accounted for two-thirds of the S&P 500’s $10 trillion gain in market value last year.</li><li>Stock pickers are benefiting from reduced correlation among stocks, allowing individual names to chart their own course. However, the resilience of big tech stocks in recent years poses a risk for active managers.</li></ul>

Stock pickers’ light tech holdings are blessing as megacaps fall

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