A number of major hedge funds have commenced their filing season, revealing significant trades involving popular tech giants such as Apple, Microsoft, and Nvidia in the third quarter.
Tech Giants Dominate the Stock Market Rally
With Apple (AAPL), Amazon.com (AMZN), Google parent Alphabet (GOOGL), Facebook parent Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA) playing a vital role in this year's stock market rally, their presence is expected to be prominent in the quarterly filings of large investors.
Disclosure Requirements by the SEC
According to the Securities and Exchange Commission (SEC), any firm managing assets worth at least $100 million in publicly traded securities must disclose their holdings within 45 days following the end of each quarter.
Major Changes in Third Quarter Holdings
Chris Hohn's TCI Fund Management made a bold move by selling its entire stake in Microsoft. The previous holding amounted to 11.8 million shares - valued at approximately $4.4 billion at current market prices.
Hohn also reduced his holdings in Alphabet, trimming the number of shares from 18.5 million to 16.9 million. It is worth mentioning that last year, Hohn urged Alphabet to implement aggressive cost-cutting measures, which led to the company announcing layoffs of 12,000 employees.
On the other hand, David Tepper's Appaloosa Management significantly increased its tech holdings during the period, with one exception - Apple. The hedge fund completely divested its 480,000-share stake in the tech giant. Additionally, Appaloosa reduced its stake in Taiwan Semiconductor Manufacturing (TSM) from 1.78 million shares to 1 million shares.
Appaloosa increases stake in Amazon, Alphabet, and Meta
Appaloosa, the investment firm, has increased its stake in Amazon, Alphabet, and Meta. In August, the fund's stake in Amazon grew from 3.16 million shares to 3.75 million shares. Similarly, the stake in Alphabet increased from 2.31 million shares to 2.75 million shares, and the holdings in Meta rose from 1.5 million shares to 1.95 million shares. Appaloosa also held 1.65 million shares of Microsoft at the end of the quarter, up from 1.24 million previously.
Soros Fund Management takes new position in Apple
On a positive note for Apple, Soros Fund Management, founded by billionaire George Soros, has taken a new position in the company. They acquired around 41,000 shares in the iPhone maker. Additionally, Soros bought 325,000 shares of chip designer Arm Holdings (ARM).
Soros sells positions in Microsoft and Nvidia
However, Soros also sold positions in Microsoft and Nvidia. They sold around 10,000 shares each in these companies.
Tiger Global Management raises stake in Nvidia
Looking ahead to Nvidia's upcoming earnings report, there is increased scrutiny on trades involving the chip maker. Tiger Global Management, led by Chase Coleman, has shown optimism by raising its stake in Nvidia to 1.1 million shares in the third quarter, up from 628,575 previously. Despite suffering heavy losses on tech investments last year, Tiger Global Management seems confident in Nvidia.
Warren Buffett's position in Apple remains unchanged
Warren Buffett and Berkshire Hathaway's significant position in Apple remains unchanged. This holding is considered one of the most consequential for market sentiment.