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Tue, December 17, 2024

Tech-Loving Hedge Funds Have a Crush on Utility Stocks


Published on 2024-12-17 08:41:15 - MSN
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  • Old-school power companies have become darlings among hedge-fund firms thanks to their starring role in the artificial-intelligence boom.

The article from MSN discusses how hedge funds, traditionally known for their love of technology stocks, are increasingly showing interest in utility stocks. This shift is driven by several factors including the stability and predictable cash flows of utilities, which contrast with the volatility often seen in tech stocks. Utility companies are also seen as beneficiaries of the ongoing energy transition, with investments in renewable energy and infrastructure upgrades making them attractive. Moreover, with rising interest rates and economic uncertainties, utilities offer a defensive play with their essential services, providing a steady income stream through dividends. This trend reflects a broader strategy among hedge funds to diversify and balance their portfolios amidst market fluctuations, seeking both growth and income stability.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/technology/tech-loving-hedge-funds-have-a-crush-on-utility-stocks/ar-AA1w0MQ6 ]
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