In the course of the June quarter, hedge funds lower their publicity to laggards in industries like aerospace and defence, and client and retail, as a part of a broader transfer again to momentum investing.
It marks a giant shift from earlier this yr when bets on Huge Tech had soured for high cash managers because of tariff-fuelled volatility in monetary markets, with investor issues round rising inflation and fears of a bubble in AI triggering a sell-off in “Magnificent Seven” shares.
Since then, tech shares have staged a giant comeback. The S&P 500 is up 10% up to now this yr, buoyed largely by the biggest tech corporations, which account for almost a 3rd of the mixed market cap of corporations on the index.
Outdoors expertise, some hedge funds, corresponding to Lone Pine and Discovery, additionally guess on UnitedHealth Group. Berkshire Hathaway and Michael Burry’s Scion Asset Administration additionally unveiled bets on the insurer, whereas Soros Fund Management boosted an current place.
Shares in UnitedHealth are down 46% this yr, as the corporate faces rising prices, a U.S. Division of Justice probe, a cyberattack and the capturing of former high government Brian Thompson final December.
The fund’s positions have been revealed in quarterly securities filings generally known as 13Fs. Whereas backward-looking, these filings usually reveal what funds owned on the final day of the quarter and are one of many few methods hedge funds and different institutional buyers should declare their positions.
Beneath are the small print of the modifications within the holdings of the highest hedge funds:
Bridgewater Associates
Bridgewater Associates added extra shares in Nvidia, Alphabet and Microsoft within the second quarter.
The macro hedge fund based by Ray Dalio greater than doubled its bets in Nvidia. It ended June with 7.23 million shares within the chipmaker, or 154.5% greater than it had on the finish of March. Nvidia was Bridgewater’s largest guess in a single inventory, totalling $1.14 billion.
Its holdings in Alphabet and Microsoft went up by 84.1% and 111.9%, respectively, amounting to $987 million and $853 million.
Different AI-related shares added have been Broadcom (+102.7%), to 317.8 million shares, or $317 million, and Palo Alto Networks (+117%), to 313.8 million, or $314 million.
Discovery Capital
Discovery Capital, whose founder Rob Citrone has not too long ago been bullish on Mexico’s America Movil because of its publicity to Latin America, doubled its stake within the wi-fi supplier throughout the second quarter.
For the quarter ended June 30, the fund amassed one other 2.65 million shares, valuing its present holding in America Movil at about $95 million.
Citrone’s hedge fund, which generated a 52% windfall on its investments final yr, has elevated its publicity to Latin America as a part of a technique to diversify from U.S. holdings.
In the course of the quarter, Discovery elevated its holdings in Huge Tech, because it greater than doubled its stake in Meta Platforms, the dad or mum firm of Fb, whereas additionally betting on booming demand for AI because it took a brand new place in Nvidia-backed cloud supplier CoreWeave.
The hedge fund additionally elevated its place in UnitedHealth by 13%.
Tiger International Administration
Tiger International Administration purchased extra shares in some Magnificent Seven corporations within the second quarter, together with Amazon.com, Alphabet, Nvidia, Microsoft and Meta, its 13Fs confirmed.
Chase Coleman’s hedge fund added roughly 4 million shares of Amazon and ended June with roughly 10 million shares, value $2.34 billion.
The fund additionally elevated its bets in smaller AI-players. It added over 800,000 shares in chip-making tools provider Lam Analysis Corp, ending June with 5.26 million shares, valued at $512 million.
Coatue Administration
Many modifications in Philippe Laffont’s Coatue Administration portfolio have been additionally round AI-related shares. It unveiled new positions in each Arm Holdings and Oracle, including stakes value roughly $750 million and $843 million, respectively. Each corporations have boosted AI-related enterprise initiatives.
Coatue additionally elevated its holdings in Nvidia-backed CoreWeave, including 3.39 million shares within the second quarter, with its stake within the firm value $2.9 billion.
Lone Pine Capital
Lone Pine Capital took a brand new place in UnitedHealth Group, shopping for up 1.69 million shares value about $528 million throughout the June quarter.
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