Amazon, UnitedHealth and CoreWeave emerge as key targets in second quarter portfolio shifts
Hedge funds poured billions into technology giants in the second quarter, signalling a decisive return to Big Tech and artificial intelligence (AI) after months of volatility.
According to Bloomberg, hedge fund holdings of Microsoft grew by US$12bn to US$47bn by the end of June, making it the most valuable overall position at US$46.83bn.
Shares in the company also edged 0.4 percent higher in premarket trading following the filing release.
Reuters reported that Bridgewater Associates more than doubled its Nvidia stake, ending the quarter with 7.23m shares worth US$1.14bn, its largest single-stock bet.
The fund also raised its positions in Alphabet and Microsoft by 84.1 percent and 111.9 percent, valued at US$987m and US$853m. Additional AI-related moves included boosting Broadcom by 102.7 percent and Palo Alto Networks by 117 percent.
Tiger Global Management added heavily to its holdings, purchasing roughly 4m Amazon shares to reach 10m shares valued at US$2.34bn.
The fund also raised positions in Alphabet, Nvidia, Microsoft, Meta, and Lam Research, with its stake in Lam rising to 5.26m shares worth US$512m, according to Reuters.
Philippe Laffont’s Coatue Management unveiled new positions in Arm Holdings and Oracle, worth about US$750m and US$843m, respectively, while expanding its CoreWeave stake to 3.39m shares valued at US$2.9bn.
Discovery Capital also increased its exposure, more than doubling its Meta position and adding a new stake in CoreWeave, Reuters noted.
The firm expanded its America Movil investment to about US$95m and raised its UnitedHealth position by 13 percent.
Lone Pine Capital took a new position in UnitedHealth, buying 1.69m shares worth about US$528m.
As per Reuters, Berkshire Hathaway, Scion Asset Management, and Soros Fund Management also increased holdings in the health insurer.
Bloomberg reported that Warren Buffett and David Tepper added positions as well, sending the stock up as much as 14 percent.
UnitedHealth remains down 46 percent this year amid rising costs, a US Department of Justice probe, a cyberattack, and the December shooting of former executive Brian Thompson.
Bloomberg’s analysis of 716 hedge funds showed combined holdings increased to US$726.54bn from US$622.94bn in the previous quarter.
Technology represented the largest portfolio weighting at 23 percent, followed by financials at 17 percent, while energy saw the smallest gains.
Portfolio reshuffling extended beyond technology.
According to Bloomberg, Bridgewater sold 5.66m shares of Alibaba, the biggest reduction among hedge funds. Coatue also cut 2.93m shares, while Arrowstreet Capital trimmed its Petrobras holdings by 21.2m shares.
Overall, hedge fund investment in Alibaba fell by US$1.55bn, the steepest market value drop of any holding. Amazon, in contrast, saw the largest tally of increases or initiations, with 177 investors adding positions, while Meta was reduced or cut by 147 investors.
The data came from 13F filings, which capture holdings as of June 30.
While backward-looking, Reuters noted the filings remain one of the few tools to assess hedge fund positions.
Bloomberg added that the data excluded companies engaged in mergers, IPOs, or SPAC activity and may shift with amended filings.
