US large-cap active mutual funds are now underweight AI-related equities by approximately 107 basis points relative to their benchmarks, according to a Goldman Sachs analysis covering 504 actively managed funds with approximately $4.6 trillion in equity assets. Nvidia represents the largest single drag, with an underweight of approximately 100 basis points, followed by Alphabet at 70 basis points, AMD at 60 basis points and Microsoft at 50 basis points. Only 36% of large-cap core and growth funds managed to outperform their style benchmarks during the period examined. Hedge funds, which have more flexibility in position sizing, maintained deeper exposure to AI themes than mutual funds, with approximately $5.4 trillion in equity assets analyzed.
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