Hedge Funds Increase Exposure to Nvidia and Reduce AMD - Latest Global News

Hedge Funds Increase Exposure to Nvidia and Reduce AMD

(Bloomberg) — Hedge funds continued to bet on the biggest technology companies leading the way in artificial intelligence as hype drove the U.S. stock market higher in the first quarter of the year.

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These institutional investors saw Nvidia Corp.’s commitment. increased, with the AI ​​darling posting the largest market value increase for a single stock in the three months ended March 31, even as hedge funds net sold shares. They also saw increased exposure to AI leaders Amazon.com Inc, Meta Platforms Inc. and Microsoft Corp, according to Bloomberg’s analysis of data from 13F filings. and at the same time reduced their positions. Among individual hedge funds, Warren Buffett’s Berkshire Hathaway Inc. announced a stake in insurer Chubb Ltd. known.

Shares of Chubb rose as much as 11% in premarket trading on Thursday, putting the stock on track for its biggest rise since November 2008. Meanwhile, shares of Nvidia rose slightly, rising 0.5%.

The move in holdings came as Wall Street fund managers continued to monitor the Federal Reserve’s prospects for rate cuts. The S&P 500 rose 10% in the first three months of 2024 and ended the quarter at an all-time high. The tech-heavy Nasdaq 100 Index gained 8.5% through the end of March.

At the same time, fund managers reduced their holdings of Thermo Fisher Scientific Inc., Snap Inc. and Advanced Micro Devices Inc., according to the data.

Bloomberg has analyzed 13F filings from 1,124 hedge funds so far. Their total holdings were $1.887 trillion, compared to $1.728 trillion held by the same funds three months earlier.

Technology had the largest weighting in the investor group’s portfolios at 28%, followed by consumer discretionary at 14%. The value of investments in technology increased the most across all industries, while real estate increased the least.

  • Tiger Global Management LLC has increased its stake in Alphabet Inc.’s Class A shares. The fund increased its exposure to the broader communications and technology sectors, including increased positions in Amazon.com

  • Renaissance Technologies LLC split from Exxon Mobil Corp. and at the same time added Chevron Corp. added. The fund increased its weighting in financials more than any other industry, while decreasing its weighting in the communications sector.

  • Two Sigma Advisers LP focused on Walmart Inc. while increasing its weighting in healthcare stocks, including an increased stake in Humana Inc. The company reduced its weighting in the technology sector, with Advanced Micro Devices and Flex Ltd. were among the technology exits

  • Michael Burry’s Scion Asset Management LLC exited positions in Oracle Corp. and Alphabet Inc. Class A. His largest holding was JD.com Inc. Class A, which accounted for 9.5% of his assets.

  • Berkshire Hathaway reduced its position in Apple Inc. as the company reduced its overall weighting in technology stocks. Even after the reduction, Apple still represented the largest share at 41% of assets.

  • Microsoft was shorted or reduced by 252 investors, the largest number of its kind; Amazon.com was built or initiated by 232 investors, the largest number. Microsoft was the most valuable overall holding at $60.62 billion

– With support from Subrat Patnaik.

(Updates to add inventory movements in third paragraph.)

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