Invesco QQQ Draws Growing Interest from Hedge Funds Amid Looming Government Shutdown Concerns

In light of the potential government shutdown, investment firms are showing heightened interest in the Invesco QQQ Trust, with several hedge funds increasing their investments in this exchange-traded fund (ETF) during the second quarter of 2023.

For instance, GPS Wealth Strategies Group LLC raised its holdings in Invesco QQQ by 6.9%, bringing its total to 58,895 shares valued at approximately $21.76 million. Similarly, CVA Family Office LLC increased its stake by 2.0%, now owning 7,450 shares worth about $2.75 million. Symphony Financial Ltd. Co. also boosted its position by 5.3%, holding 4,247 shares valued at around $1.55 million.

One notable development came from Centerpoint Advisors LLC, which significantly increased its stake by 546.3% during the second quarter. The firm now possesses 433 shares of the ETF worth about $160,000, having acquired an additional 366 shares during this time.

Raleigh Capital Management Inc. made even more headlines with a remarkable 6,686.3% increase in its investment during the first quarter of 2023. This left the firm with 6,922 shares valued at $2.22 million after adding an impressive 6,820 shares.

Recent reports indicate that institutional investors currently own 43.95% of the stock in Invesco QQQ.

Meanwhile, as the iShares ETF approaches its starting point for the year, investors are increasingly focusing on the Invesco QQQ Trust. Although tech stocks managed to end their recent decline, the breakdown from a three-week trading pattern has created substantial overhead resistance. This situation could prompt buyers from recent weeks to consider exiting their positions, especially since many are currently at a loss.

Investors are advised to view any significant drop due to a government shutdown as a chance to strengthen their positions, although larger tech stocks may face greater challenges given the current technical conditions. A close in QQQ below $355 would signal uncertain territory, lacking clear support below. If a breakdown occurs, a target of $338 is suggested based on recent trading patterns.