Stock Pickers’ Light Tech Holdings Are Blessing as Megacaps Fall

Stock pickers are holding their smallest allocations of megacap names such as Apple Inc. and Nvidia Corp. since the global financial crisis, boosting their funds’ performance in a year that has kicked off with a slide in technology shares.

For more than a decade, active fund managers have struggled to beat the indexes they are benchmarked to. In large part, that’s because their positions in the massive tech names driving markets higher were lighter than the stocks’ hefty weightings in gauges such as the S&P 500.