Hedge funds add Apple to their portfolio and restructure their technology portfolio – BNN Bloomberg
(Bloomberg) — Hedge funds continued to buy shares of some of the biggest technology companies, including Apple Inc., in the second quarter while reducing their positions in Nvidia Corp., reorganizing their positions in the artificial intelligence boom that has led to a rapid rally in the U.S. stock market.
The iPhone maker posted the biggest increase in market value of a single stock in the three months to the end of June, according to data from 13F filings compiled by Bloomberg. The stock rose nearly 25 percent during the period, attracting a total of more than 8.5 million shares from hedge funds. Janus Henderson Group Plc and Third Point LLC were among the funds that bought Apple. The company’s shares rose 0.2 percent in premarket trading.
According to the data, hedge funds also increased their holdings in other AI-related companies such as Amazon.com Inc and Taiwan Semiconductor Manufacturing Co Ltd. At the same time, funds sold shares of AI darling Nvidia Corp in the second quarter to lock in their profits from the rapid rally. Microsoft Corp was cut or reduced by 140 investors, the largest of those cuts.
Data compiled by Bloomberg show that Michael Burry’s Scion Asset Management further increased its stake in Chinese technology giant Alibaba Group Holding Ltd. while halving its overall stock portfolio.
The shift in hedge fund holdings came as the S&P 500 index rose 3.9% in the second quarter, contributing to a 14% rally in the first half of 2024, boosted by a robust economy and solid corporate earnings. But conditions have changed since then. In July, Wall Street managers began pulling out of large-cap companies and investing in smaller and riskier sectors. And global equity markets were hit by a massive sell-off earlier this month, driven by concerns about a slowing U.S. economy and an AI bubble.
Bloomberg has so far analyzed 13F filings from 674 hedge funds. Together, their holdings amount to $443.46 billion. Three months earlier, the figure was $427.22 billion.
At 27%, technology had the largest share of hedge fund portfolios, followed by consumer goods at 16%. The value of investments in communications fell the most of all sectors. The largest increase was in technology.
- Trian Fund Management LP sold 29.69 million shares of Walt Disney, the largest reduction by the investor group; Twin Tree Management LP sold 512,934 shares
- Tairen Capital Ltd bought 2.8 million Apple shares, representing the largest increase; Renaissance Technologies LLC bought 1.31 million shares.
- Reverence Capital Partners LP bought 23.2 million shares of New York Community Bancorp, representing the largest increase; Renaissance Technologies LLC bought 1.25 million shares.
- At Microsoft, there were 140 investor cuts or reductions, the largest number of its kind; at Amazon.com, there were 166 investor raises or introductions, the largest number of its kind.
- Microsoft was the most valuable overall holding at $26.24 billion
- Warren Buffett’s Berkshire Hathaway Inc. said it acquired a new stake in Ulta Beauty Inc. and increased its stake in Sirius XM Holdings Inc.
– With support from Subrat Patnaik.
(Updated with stock movement in paragraph two.)
©2024 Bloomberg L.P.
