Hedge funds buy shares of software manufacturers

In this reporting season, investor preferences changed frequently.. Today, when the world is tense with economic growth, technology stocks remain the most sought-after, in particular — software developers. And their high appreciation is not an obstacle to continued growth..

Хедж-фонды покупают акции производителей ПО

Goldman Sachs Group Inc. Basket, including shares of software developers with high multipliers, grew by more than 8% since the beginning of the reporting season for the third quarter, ahead of S&P 500. iShares Expanded Tech-Software Sector ETF привлекает наибольший приток средств за всю историю существования. Behind this growth is a belief in that., that software manufacturers can make a profit at that time, when labor shortages force companies to look for ways to improve efficiency and productivity. If you look at the situation more broadly, the industry will also benefit from rising spending on cloud computing and cybersecurity..

"The software is in an advantageous position", — notes Anastasia Amoroso, Chief Investment Strategist, iCapital Network. "If you look at the price-to-sales ratio for an index or certain companies., then they go through the roof. But until then, as long as software manufacturers' revenue growth continues, I think, that in terms of price-to-income/growth ratio, software developers remain one of the most attractive sectors".

This optimism is shared by investors.. Last month, traders poured a record amount of money into the iShares Expanded Tech-Software Sector ETF. (IGV). Meanwhile, hedge funds increased their share in the industry to a five-year high, according to the data, collected by Goldman prime broker.

Expected, that the profits of software companies in S&P 500 in the iii quarter will increase by 26% with the growth of sales on 15%, evidence of actual results and analyst estimates, compiled by Bloomberg Intelligence.

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