(Bloomberg) — Hedge funds continued to target the biggest technology companies leading the way in artificial intelligence as hype lifted the U.S. stock market in the first quarter of the year.
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These institutional investors saw the exposure to Nvidia Corp. growing, with the AI ​​darling seeing the largest market value gain for a single stock in the three months ended March 31, even as hedge funds on net shares sold. They also saw greater exposure to AI leaders Amazon.com Inc, Meta Platforms Inc. and Microsoft Corp., as they trimmed their positions, according to Bloomberg’s analysis of data from 13F filings. Among individual hedge funds, Berkshire Hathaway Inc. revealed. from Warren Buffett a stake in insurer Chubb Ltd.
Shares of Chubb rose as much as 11% in premarket trading Thursday, putting the stock on track for its biggest gain since November 2008. Meanwhile, Nvidia shares rose, up 0.5%.
The shift in positions 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 a record high. The tech-heavy Nasdaq 100 index gained 8.5% through the end of March.
At the same time, according to the data, fund managers have the holdings of Thermo Fisher Scientific Inc., Snap Inc. and Advanced Micro Devices Inc. scaled back.
Bloomberg has analyzed 13F filings from 1,124 hedge funds to date. Their combined holdings amounted to $1.887 trillion, compared to $1.728 trillion held by the same funds three months earlier.
Technology occupied the largest weighting in the investor group’s portfolios at 28%, followed by consumer discretionary at 14%. The value of investments in technology rose the most, while real estate rose the least for any sector.
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Tiger Global Management LLC has sold its interest in Class A shares of Alphabet Inc. increases. The fund increased its exposure to the broader communications and technology sectors, including larger positions in Amazon.com
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Renaissance Technologies LLC left Exxon Mobil Corp. and added Chevron Corp. The fund increased its weightings in financial stocks by more than any other sector, while reducing its weightings in the communications sector.
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Two Sigma Advisers LP chose Walmart Inc. while increasing their weighting in healthcare stocks, including a larger stake in Humana Inc. The company reduced its weighting in the technology sector, including Advanced Micro Devices and Flex Ltd.
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Michael Burry’s Scion Asset Management LLC exited positions in Oracle Corp. and Alphabet Inc. Class A. The largest holding was JD.com Inc. Class A, which represented 9.5% of its assets.
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Berkshire Hathaway cut its position in Apple Inc. as it lowered its overall weighting in technology stocks. Even after the reduction, Apple still represented its largest stake, accounting for 41% of assets.
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Microsoft was cut or downgraded by 252 investors, the largest number; Amazon.com was expanded or initiated by 232 investors, the largest number. Microsoft was the most valuable company at $60.62 billion
–With help from Subrat Patnaik.
(Updates to add stock movements in third paragraph.)
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