Mega-cap tech stocks remain the cornerstone of hedge funds' top 20 equity positions, according to a report by MarketWatch citing recent analysis of 332 money managers with in excess of $1bn in AUM.

The analysis, based on recent public filings, reveals that the "Magnificent Seven" tech giants hold the top six spot in hedge funds' equity portfolios, with Amazon.com the most widely held stock, followed closely by Microsoft, Apple, Meta Platforms and Alphabet’s Class A shares.

Nvidia, which has seen its share price skyrocket nearly 170% year-to-date, secures the sixth position, surpassing fellow chipmaker Broadcom.

Notably, the past month saw new entrants among the most commonly held stocks by hedge funds, including Spotify Technology, Thermo Fisher Scientific, GE Vernova and Adobe.

Despite tech stocks' prominence in hedge fund portfolios though, the funds remain underweight in the sector compared to the broader S&P 500 index, which is increasingly dominated by leading tech companies. Currently, tech stocks account for 16% of hedge funds' portfolios, whereas they represent 30% of the S&P 500 index by market value.

Alphabet’s Class C shares rank seventh on the list of top 20 equity positions, followed by Visa and Taiwan Semiconductor Manufacturing Co. Eli Lilly, buoyed by enthusiasm over its GLP-1 weight loss drug, claims the 11th spot. UnitedHealth Group ranks 12th, ahead of Uber Technologies and Mastercard. Spotify shares surged in July, driven by record profits from a sharp increase in subscriber numbers, helping the company secure a spot in the top 20.

Rounding out the list, Salesforce CRM, Berkshire Hathaway and Adobe occupy the 18th, 19th and 20th positions respectively, according to the analysis.