Hedge funds boosted exposure to US technology companies in the second quarter of the year, with Microsoft and Netflix among the biggest winners from the latest round of 13F filings, according to a report by Bloomberg.

Aggregate hedge fund holdings in Microsoft jumped by $12bn to $47bn, driven by both net new buying and the stock’s strong performance, according to Bloomberg data. Netflix also featured prominently among fresh allocations.

Elsewhere, heavyweight investors including Warren Buffett and David Tepper built positions in UnitedHealth after the stock tumbled almost 40%, with the insurer subsequently rebounding more than 14%.

The biggest reduction came in Alibaba, where hedge funds pared $1.55bn of exposure — the largest single decline by market value.

The quarter was marked by political volatility around US trade policy, though equities finished strongly. The S&P 500 notched its best three-month run since late 2023, rallying 25% from April lows, while the Nasdaq 100 posted its strongest performance in more than two years.

Across the 716 hedge funds tracked, total equity holdings reached $727bn at the end of June, up from $623bn three months earlier. Technology remains the most overweight sector at 23% of reported portfolios, followed by financials at 17%, while energy exposure showed the smallest gains.