Hedge Funds Add Amazon And Intel While Cutting Nike And Pfizer, Filings Show
Over the last few months 2023, Wall Street fund managers were closely tracking the outlook for the Federal Reserve’s most aggressive hiking cycle as well as its impact on equity valuations.
(Bloomberg) -- Hedge funds bought into some of the biggest technology names in the fourth quarter to chase a scorching rally in the sector fueled by the growth in artificial intelligence, according to the latest quarterly reports investment managers filed with the US Securities and Exchange Commission.
These institutional investors added 14.8 million shares of Amazon.com at $21.6 billion, the biggest increase by market value for a single stock in the three months through December. They also bolstered positions in AI pioneers Intel Corp. and Nvidia Corp., according to Bloomberg’s analysis of data from 13F filings. Meta Platforms Inc. was an outlier that saw a net sale of $6.6 million shares from this group of investors, a sign of profit taking during the stock’s 18% rally.
Over the last few months 2023, Wall Street fund managers were closely tracking the outlook for the Federal Reserve’s most aggressive hiking cycle as well as its impact on equity valuations. The tech-heavy Nasdaq 100 Index soared 54% in 2023, the most since 1999, while the S&P 500 gained 24% and has continued to reach records so far this year.
Meanwhile, hedge funds reduced the value of investment in Nike Inc. and Pfizer Inc., according to the data. Among individual hedge funds, Michael Burry’s Scion Asset Management closed its wager against semiconductor companies, and snapped up shares across industries including healthcare.
Read: Burry Covers Bearish Semis Wager, Buys Health and Tech Stocks
Bloomberg has so far analyzed 13F filings by 835 hedge funds. Their combined holdings amounted to $677.23 billion, compared with $614.09 billion held by the same funds three months earlier.
Technology accounted for the biggest weighting in the investor group’s portfolios, at 25%, followed by consumer discretionary, at 15%. The value of investments in technology climbed the most while utilities rose by the least for any industry.
- Two Sigma Advisers LP sold 4.52 million shares in Nike Class B, the biggest reduction by the investor group; Renaissance Technologies LLC sold 3.48 million shares
- Renaissance Technologies LLC sold 17.03 million shares in American Airlines Group, the biggest reduction by the investor group; Two Sigma Advisers LP sold 6.78 million shares
- Renaissance Technologies LLC added 4.3 million shares in Amazon.com, the largest increase; Egerton Capital UK LLP added 4.15 million shares
- Farallon Capital Management LLC added 5.47 million shares in Vestis, the largest increase; Arrowstreet Capital LP added 1.78 million shares
- Amazon.com was cut or reduced by 158 investors, the biggest such number; Amazon.com was also increased or initiated by 158 investors, the biggest tally
- Meta Platforms Class A was the most valuable overall holding at $21.65 billion
Biggest Increase in Aggregate Position
Biggest Decrease in Aggregate Position
Biggest Increase in Market Value
Biggest Decrease in Market Value
Companies that were involved in M&A deals, spin-offs, IPOs and SPAC plays during the quarter were excluded from the story. The data are preliminary and may be impacted by amended 13F filings. Market value changes are adjusted for corporate actions such as normal cash dividends.
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