According to a customer report, Findlay Park Partners LLP, which has around $11.3 billion in assets, liquidated its holding of Nvidia (NVDA.US) stocks in the third quarter. The report indicates that Nvidia's stocks once accounted for 5% of the total holdings of this fund this year. In addition, the report also shows that as of the end of September, the proportion of Microsoft (MSFT.US) stocks held by the fund decreased from 4.8% in August to 3%, while Microsoft has been the fund's top holding for most of the past decade.

Data shows that analysts currently expect the earnings growth of the 'Magnificent Seven' stocks in the US stock market to slow from 36% in the previous quarter to 18% during the third quarter. Findlay Park Partners LLP CEO Simon Pryke stated: "To some extent, the performance growth of the 'Magnificent Seven' in the US stock market has proven their outstanding performance, but the current earnings growth expectations are quite modest, and valuations still reflect a strong growth trend continuing. Surely one of them is wrong."

Findlay Park Partners LLP operates under the European UCITS framework aimed at protecting retail investors, mainly investing in the US market. Data shows that the fund's return rate in the past year is about 29%, compared to peers at around 16%, with lower volatility; in 2023, the fund outperformed 90% of its peers.

Findlay Park Partners LLP focuses on betting on stocks closely related to the US domestic market and supply chain. Simon Pryke stated that this approach means they have never held Tesla (TSLA.US) or Apple (AAPL.US) stocks. The fund mentioned in its report to clients that the proportion of stocks of the 'Magnificent Seven' held by them is only 4.8%, while the benchmark weight exceeds 28%.

Rose Vangerven, the investment manager of Findlay Park Partners LLP, stated that about 40% of the fund's portfolio consists of companies with a market cap between $5 billion and $50 billion. Simon Pryke added that they prefer to invest in B2B companies rather than consumer-facing companies because "they are usually asset-light businesses with high recurring revenue and high free cash flow generation capacity".

Since the beginning of this year, the US stock market has repeatedly hit new highs. For most of the first half of the year, this upward trend has been concentrated in a few stocks (mainly technology stocks). However, as investor concerns about the threat of an economic recession subside, coupled with doubts about the return on investment from massive spending on artificial intelligence, the stock market gains have expanded to small-cap stocks in the third quarter.

However, the overall outlook for the technology industry remains optimistic. Analysts predict that the S&P 500 Information Technology index, composed of companies like Nvidia, Apple, and Microsoft, will reach around 4962 points in the next 12 months, indicating there is still about 14% upside potential.