Top Funds' Activity in Q2 2024

Louis Goss of MarketWatch reports Druckenmiller, Soros, Tepper among investors selling Nvidia in second quarter as tech stocks slumped:

The recent slump in Nvidia’s share price has seen an assortment of the world’s top money managers cash in on gains made during the 2023 rally by ditching shares in the microchip maker as the stock hit all-time highs in the second quarter of 2024, new U.S. 13-f filings show.
High profile investment funds including Stanley Druckenmiller’s Duquesne Family Office, David Tepper’s Appaloosa Management, Soros Capital and Lee Ainslie’s Maverick Capital all cut their stakes in Nvidia in the second quarter, the filings show.
Nvidia’s NVDA share price is up more than 700% since the start of 2023 following a major rally in tech sector stocks fueled by the potential of artificial intelligence technologies.
George Soros’ investment firm and Druckenmiller’s family office both cut their positions in Nvidia in the second quarter, as Tepper’s Appaloosa Management also sold down its stake in the California tech giant by 84%, the filings to the U.S. Securities and Exchange Commission show.
Ainslie’s hedge fund Maverick Capital only trimmed its stake in Nvidia by 2.86% in the second quarter of 2024 after having first acquired almost 464,000 shares in the company in the first quarter of 2023.
The Bill & Melinda Gates Foundation previously fully-exited its stake in Nvidia in the fourth quarter of 2023. Chase Coleman III’s investment firm, Tiger Global Management, also reduced its huge stake in the company in the final three months of last year.
Nvidia’s stock price subsequently surged in 2024 in a rally that saw the tech stock account for more than a third of all gains made by stocks listed on the S&P 500 index in the first half of the year.
Druckenmiller’s $4.4 billion family office first bought Nvidia shares in the fourth quarter of 2022, on the back of a minor dip in the chip designer’s share price just before the stock surged to become one of America’s most valuable listed companies.
Tepper’s $14 billion Appaloosa Management first acquired its stake in Nvidia in the first quarter of 2023 before significantly upping its stake in the second quarter of last year prior to selling out of the position in the second quarter of 2024.
Soros Capital has repeatedly bought and sold stakes in Nvidia since the fourth quarter of 2019 having acquired its most recent position in the Magnificent Seven giant in the first quarter of this year before selling it off in the second quarter.

Brian Baker and James Royal of Bankrate also report on which stocks Warren Buffett’s Berkshire Hathaway bought and sold last quarter:

Warren Buffett is arguably the world’s most famous investor, and his investment moves are closely followed. Each quarter, the company he runs, Berkshire Hathaway, discloses its current holdings to shareholders.

Here are some of the changes Buffett and his two investment officers, Todd Combs and Ted Weschler, made during the second quarter, according to the latest 13F regulatory filing with the Securities and Exchange Commission. The holdings are reported as of June 30, 2024.

Berkshire Hathaway’s portfolio holdings: Where Buffett & Co. are buying/adding

Ulta Beauty (ULTA)

Ulta Beauty caught Berkshire’s eye in the most recent quarter, and the conglomerate opened a position in the purveyor of beauty products, albeit a relatively small 690,000 shares. The value of that position came to about $266 million as of June 30.

HEICO (HEI-A)

HEICO is another new position for Berkshire this quarter, with just over a million shares added to Berkshire’s stable. This maker of industrial parts has been a long-term winner, and Berkshire’s new stake comes to more than $185 million as of June 30.

Chubb Limited (CB)

In the second quarter, Berkshire added a further 4.3 percent to its recently disclosed stake in insurance giant Chubb. Berkshire revealed a new $6.7 billion stake in the first quarter, but actually first established the position in the third quarter of 2023. Berkshire had received confidential treatment from the Securities and Exchange Commission for the position so it didn’t have to disclose it when it was still accumulating the stake.

Liberty Sirius XM Series A/C (LSXMA and LSXMK)

Berkshire continued to add to its position in Liberty Sirius XM Series A and C shares during the second quarter. It boosted its position in the A shares by more than 7 percent and the C shares by nearly 7 percent. The combined stake was worth about $2.3 billion at the end of June.

Occidental Petroleum (OXY)

Berkshire also added slightly to its stake in Occidental Petroleum during the second quarter. Berkshire boosted its position by nearly 3 percent and held more than 255 million shares worth $16.1 billion at the end of June.

Sirius XM Holdings (SIRI)

Berkshire sharply increased its relatively small position in satellite radio leader Sirius XM, boosting that stake about 262 percent, to a total of nearly 133 million shares. The shares were worth about $376 million at the end of the second quarter. Just last quarter, Sirius had cut its stake in the company by 9 percent.

Berkshire Hathaway’s portfolio holdings: Where Buffett & Co. are selling

Apple (AAPL)

Buffett and company sharply pared their stake in Apple, Berkshire’s largest holding, reducing it more than 49 percent during the second quarter. Berkshire sold about 389 million shares and now holds exactly 400 million shares worth more than $84 billion at the end of June. Buffett told shareholders at the Berkshire annual meeting that he expected Apple to be a top holding for years, but he was not afraid to trim as the market for tech ran hot through the first half of the year.

Capital One Financial (COF)

Berkshire also reduced its position in Capital One Financial, cutting that some 21 percent, to about 9.8 million shares. The stake was valued at more than $1.3 billion as of June 30.

T-Mobile US (TMUS)

Telecom player T-Mobile US was also trimmed in the second quarter, with Berkshire reducing that stake by nearly 11 percent. The conglomerate still owns nearly 4.7 million shares worth more than $823 million as of the second quarter.

Paramount Global (PARA)

Berkshire closed out its stake in Paramount Global during the second quarter, after slashing it by more than 88 percent in the first quarter. The position was established during the first quarter of 2022 and Buffett took responsibility for the mistake, saying Berkshire had lost a lot of money on it.

Snowflake (SNOW)

Berkshire completely cleared out its stake in Snowflake, a cloud company and artificial intelligence (AI) play, in the second quarter. It sold off more than 6.1 million shares.

Chevron (CVX)

Buffett and company also reduced Berkshire’s existing position in energy giant Chevron, one of Berkshire’s largest holdings, by about 3.6 percent. Berkshire now holds about 119 million shares worth $18.6 billion at the end of the second quarter.

Louisiana-Pacific Corp. (LPX)

Berkshire reduced its stake in Louisiana-Pacific Corp. by about 10 percent during the second quarter, following a reduction of around 6 percent in the first quarter. It held nearly 6 million shares worth about $491.1 million at the end of June. The position was first established in the third quarter of 2022.

Floor & Decor Holdings (FND)

Floor & Decor also found itself on the Berkshire chopping block, with Buffett et al. cutting the position by nearly 17 percent, to just below 4 million shares. The position in the specialty retailer is worth $395 million as of June 30.

Liberty Live Group A/C (LLYVA and LLYVK)

Berkshire also trimmed its holdings in Liberty Live, both the A and C series of the media company. The C series was reduced by 1.9 percent, while the A series was cut by 1.3 percent. The combined position was worth about $605 million as of the end of June.

Top stock holdings in Buffett’s portfolio

Berkshire takes a concentrated approach with its investments, typically holding the majority of its portfolio in just a few companies. Its largest holdings at the end of the second quarter accounted for about 73 percent of the portfolio’s value, and included these top five positions (valuations as of June 30, 2024):

Apple (AAPL) – $84.2 billion
Bank of America (BAC) – $41.1 billion
American Express (AXP) – $35.1 billion
Coca-Cola (KO) – $25.5 billion
Chevron (CVX) – $18.6 billion

Buffett spent about $345 million repurchasing Berkshire stock in the second quarter of 2024, following up an earlier repurchase of about $2.6 billion in the first quarter. This is an indication that he believes the shares are undervalued and continuing shareholders will benefit from the buybacks.

Bottom line

Buffett and Berkshire have an excellent track record in selecting investments, but be sure to research any investments thoroughly before investing yourself. Even stocks owned by legendary investors decline and you’ll need to understand the businesses you’re invested in well enough to make a buy, hold or sell decision on your own.

And GuruFocus Research took a deep dive into Leon Cooperman's 13F filings:

Leon Cooperman (Trades, Portfolio), a distinguished figure in the investment world, recently disclosed his 13F filings for the second quarter of 2024. Before establishing Omega Advisors, Cooperman honed his expertise at Columbia University and later as CEO and Chairman of Goldman Sachs Asset Management. Transitioning his hedge fund into a family office in 2018, Cooperman's investment approach skillfully blends macroeconomic perspectives with rigorous fundamental valuation, focusing keenly on market valuations without attempting to predict market directions.
New Additions to the Portfolio
Leon Cooperman (Trades, Portfolio) made notable new investments in the second quarter, diversifying his portfolio with strategic additions:
Paramount Global (NASDAQ:PARA) emerged as a significant new holding with 1,025,000 shares, representing 0.45% of the portfolio and valued at $10.65 million.
Pinstripes Holdings Inc (NYSE:PNST) was another addition, with 68,824 shares making up roughly 0.01% of the portfolio, totaling $189,270.
Key Position Increases
Cooperman also augmented his stakes in several companies, with notable increases in:
WillScot Holdings Corp (NASDAQ:WSC), where he added 620,000 shares, bringing his total to 3,607,500 shares. This adjustment marked a 20.75% increase in share count and impacted the portfolio by 0.98%, with a total value of $135.79 million.
KBR Inc (NYSE:KBR) saw an addition of 250,000 shares, increasing the total to 800,000 shares. This represents a 45.45% increase in share count, with a total value of $51.31 million.
Complete Exits
In a significant move, Cooperman exited his position in:
Citigroup Inc (NYSE:C), selling all 300,000 shares, which previously had a -0.79% impact on the portfolio.
Key Position Reductions
Reductions were also part of Cooperman's strategy this quarter, particularly in:
Microsoft Corp (NASDAQ:MSFT), where he reduced his holdings by 140,000 shares, resulting in a -56.98% decrease in shares and a -2.46% impact on the portfolio. The stock traded at an average price of $422.32 during the quarter and has seen a -0.35% return over the past three months and a 10.59% year-to-date return.
Mr. Cooper Group Inc (NASDAQ:COOP) saw a reduction of 193,400 shares, marking a -6.33% decrease in shares and a -0.63% impact on the portfolio. The stock's average trading price was $80.4 this quarter, with a 7.01% return over the past three months and a 34.71% year-to-date return.
Portfolio Overview
As of the second quarter of 2024, Leon Cooperman (Trades, Portfolio)'s portfolio comprised 52 stocks. The top holdings included 9.8% in Mr. Cooper Group Inc (NASDAQ:COOP), 8.4% in Energy Transfer LP (NYSE:ET), 7.67% in Vertiv Holdings Co (NYSE:VRT), 7.6% in Apollo Global Management Inc (NYSE:APO), and 5.73% in WillScot Holdings Corp (NASDAQ:WSC). The investments span across 10 of the 11 industries, showcasing a diverse range of sectors from Industrials to Consumer Defensive.

Alright, it's that time of the year again where we get to peek into the portfolios of the "gods" of money management, with the customary 45-day lag.

Stocks closed higher Friday as the market comeback lifted S&P 500 to best week of 2024.

Now, I can tell you what Druckenmiller, Soros and other elite money managers are looking at these days, it's the USD vs the yen:

The greenback lost ground to the yen today as the 10-year US Treasury bond sold off a smidgen but since bottoming out at 140 almost 10 days ago, it has rallied and there is less concern about another unwinding of the carry trade.

Recall, in my conversation with CDPQ's Head of Liquid Markets Vincent Delisle earlier this week, he said he thinks the unwinding of the carry trade isn't over and we could see a more pronounced selloff in Mag-Seven stocks if the yen rallies again vs the dollar, forcing more deleveraging.

Last week, Goldman Sachs analysts signaled further potential downside in global equity markets based on their momentum models:

According to a note from Goldman, "more than 70% of our modeled trend signals are more negative across markets and tenor horizons," a significant increase from 38% the previous week.
The note highlights that equity markets have seen some stabilization and a rebound, but the overall trend remains bearish.
Goldman Sachs estimates that Commodity Trading Advisors (CTAs) and trend-following strategies have significantly reduced their long positions in global equities. The CTA/trend following length has been cut from around $150 billion in mid-July to $90 billion, with expectations for further reductions.
"Short trend is now more negative in 100% of the markets we track, and medium trend more negative in 80% or more," Goldman Sachs states, indicating broad-based selling pressure.
They note that in the past month, CTAs have sold approximately $41 billion of global equities, with $32 billion of that occurring in the last week alone.
Goldman Sachs adds that "simulated selling has been widespread throughout nearly all of the modeled products," with the S&P 500 (SPX) and Topix among the most heavily sold markets.

But this week, Bloomberg reports the yen carry trade that blew up markets is attracting hedge funds again.

Are hedge funds reloading, leveraging up again as the yen weakens vs the USD to buy more Magnificent Seven stocks?

Possibly, we will find out soon enough if this is truly the case.

But Thursday's melt-up in markets was more broad-based led by good retail sales report and an earnings beat from Walmart.

In fact, the two stocks to watch this week were Walmart and Starbucks which surged on news they names a new CEO, Brian Niccol, the man who turned around Chipotle previously:

It's kind of hard to be bearish on the US economy when Walmart's sales are up but ironically, this just means more American consumers are fed up of inflation and looking for values wherever they can find them.

Starbucks has been a dog for so long, I really doubt Niccol is going to turn that shipwreck around but the market seems to think so, for now.

As far as shares of Ulta Beauty, they too popped this week, benefiting from the "Buffett Effect":

This stock is worth keeping an eye on as Berkshire and Goldman increased their stake but Vanguard and BlackRock own the biggest position here by far (no surprise, they're the ETF giants that own the market).

While everyone is looking at the portfolio of Buffett and Soros, I keep telling you to really pay attention here, the Fed doesn't seem in a hurry to cut rates and the lagged effects of all those rate cuts is starting to creep into markets:

For those wondering if the last two weeks were random ... not likely. Volatility usually starts to pick about 2.5 years after the beginning of Fed tightening. It's not a perfect relationship, but if it was, we would be staring at higher volatility into the second half of 2025. pic.twitter.com/XPHihSJ9sJ
— Francois Trahan, M²SD (@FrancoisTrahan) August 13, 2024

What else? Apart from the yen and US 10-year yield, every macro trader is looking at employment data every Thursday morning and the first Friday of every month. Why? Because as Francois Trahan explains, the S&P 500 is intrinsically linked to employment:

The reason the markets reacted so much to the July employment report is multi-fold. First off, we did trigger the Sahm Rule, which everyone expecting a soft landing is familiar with. It's not a perfect indicator, but its recession signal is hard to ignore. pic.twitter.com/WtHMgmqZNW
— Francois Trahan, M²SD (@FrancoisTrahan) August 13, 2024

They will also be looking at inflation data to make sure it's heading lower:

Not sure this needs to be said, but it's Services that is holding up progress on inflation in the U.S. This is not surprising since Goods Inflation is heavily influenced by import prices, and the Trade-Weighted Dollar has been strong this year ... putting pressure on Goods CPI. pic.twitter.com/kP1PD8R8D7
— Francois Trahan, M²SD (@FrancoisTrahan) August 14, 2024

The market doesn't care about macro until it does and then all hell breaks loose.

Of course, I remind my readers that credit markets lead the stock market typically and we have yet to see a credit crisis emerge (yet being the operative word).

And while some think it's 1995 all over again and the Fed will achieve a soft landing, I say "bullocks", a hard landing awaits us but we aren't there yet:

Wells Fargo strategist says investors may face 1995 rerun once Fed cuts rates https://t.co/nZONfJ87lD via @YahooFinance
— Leo Kolivakis (@PensionPulse) August 15, 2024

Alright let me wrap this up but before I do, make sure you read this WSJ article on Ken Griffin and Citadel and why he's at the top of the hedge fund heap (and the rest are gunning for him).

Have fun looking into the portfolios of the world's most famous money managers and other top funds.

The links below take you straight to their top holdings and then click to see where they increased and decreased their holdings (see column headings and click on them).

Top multi-strategy, event driven hedge funds and large hedge fund managers

As the name implies, these hedge funds invest across a wide variety of hedge fund strategies like L/S Equity, L/S credit, global macro, convertible arbitrage, risk arbitrage, volatility arbitrage, merger arbitrage, distressed debt and statistical pair trading. Below are links to the holdings of some top multi-strategy hedge funds I track closely:

1) Appaloosa LP

2) Citadel Advisors

3) Balyasny Asset Management

4) Point72 Asset Management (Steve Cohen)

5) Millennium Management

6) Farallon Capital Management

7) Shonfeld Strategic Partners

8) Walleye Capital

9) Verition Fund Management

10) Peak6 Investments

11) Kingdon Capital Management

12) HBK Investments

13) Highbridge Capital Management

14) Highland Capital Management

15) Hudson Bay Capital Management

16) Pentwater Capital Management

17) Sculptor Capital Management (formerly known as Och-Ziff Capital Management)

18) ExodusPoint Capital Management

19) Carlson Capital Management

20) Magnetar Capital

21) Whitebox Advisors

22) QVT Financial

23) Paloma Partners

24) Weiss Multi-Strategy Advisors

25) York Capital Management

Top Global Macro Hedge Funds and Family Offices

These hedge funds gained notoriety because of George Soros, arguably the best and most famous hedge fund manager. Global macros typically invest across fixed income, currency, commodity and equity markets.

George Soros, Carl Icahn, Stanley Druckenmiller, Julian Robertson have converted their hedge funds into family offices to manage their own money.

1) Soros Fund Management

2) Icahn Associates

3) Duquesne Family Office (Stanley Druckenmiller)

4) Bridgewater Associates

5) Pointstate Capital Partners

6) Caxton Associates (Bruce Kovner)

7) Tudor Investment Corporation (Paul Tudor Jones)

8) Tiger Management (Julian Robertson)

9) Discovery Capital Management (Rob Citrone)

10 Moore Capital Management

11) Rokos Capital Management

12) Element Capital

13) Bill and Melinda Gates Foundation Trust (Michael Larson, the man behind Gates)

Top Quant and Market Neutral Hedge Funds

These funds use sophisticated mathematical algorithms to make their returns, typically using high-frequency models so they churn their portfolios often. A few of them have outstanding long-term track records and many believe quants are taking over the world. They typically only hire PhDs in mathematics, physics and computer science to develop their algorithms. Market neutral funds will engage in pair trading to remove market beta. Some are large asset managers that specialize in factor investing.

1) Alyeska Investment Group

2) Renaissance Technologies

3) DE Shaw & Co.

4) Two Sigma Investments

5) Cubist Systematic Strategies (a quant division of Point72)

6) Man Group

7) Analytic Investors

8) AQR Capital Management

9) Dimensional Fund Advisors

10) Quantitative Investment Management

11) Oxford Asset Management

12) PDT Partners

13) Angelo Gordon

14) Quantitative Systematic Strategies

15) Quantitative Investment Management

16) Bayesian Capital Management

17) SABA Capital Management

18) Quadrature Capital

19) Simplex Trading

Top Deep Value, Activist, Growth at a Reasonable Price, Event Driven and Distressed Debt Funds

These are among the top long-only funds that everyone tracks. They include funds run by legendary investors like Warren Buffet, Seth Klarman, Ron Baron and Ken Fisher. Activist investors like to make investments in companies where management lacks the proper incentives to maximize shareholder value. They differ from traditional L/S hedge funds by having a more concentrated portfolio. Distressed debt funds typically invest in debt of a company but sometimes take equity positions.

1) Abrams Capital Management (the one-man wealth machine)

2) Berkshire Hathaway

3) TCI Fund Management

4) Baron Partners Fund (click here to view other Baron funds)

5) BHR Capital

6) Fisher Asset Management

7) Baupost Group

8) Fairfax Financial Holdings

9) Fairholme Capital

10) Gotham Asset Management

11) Fir Tree Partners

12) Elliott Investment Management (Paul Singer)

50) Oaktree Capital Management

51) Fayez Sarofim & Co

18) Bridger Capital Management

19) Boxer Capital

20) Omega Fund Management

21) Bridgeway Capital Management

22) Cohen & Steers

23) Cardinal Capital Management

24) Munder Capital Management

25) Diamondhill Capital Management

26) Cortina Asset Management

27) Geneva Capital Management

28) Criterion Capital Management

29) Daruma Capital Management

30) 12 West Capital Management

31) RA Capital Management

32) Sarissa Capital Management

33) Rock Springs Capital Management

34) Senzar Asset Management

35) Paradigm Biocapital Advisors

36) Sphera Funds

37) Tang Capital Management

38) Thomson Horstmann & Bryant

39) Ecor1 Capital

40) Opaleye Management

41) NEA Management Company

42) Sofinnova Investments

39) Ariel Investments

40) ARK Investment Management

Canadian Asset Managers

Here are a few Canadian funds I track closely:

1) Addenda Capital

2) Letko, Brosseau and Associates

3) Fiera Capital Corporation

4) West Face Capital

5) Hexavest

6) 1832 Asset Management

7) Jarislowsky, Fraser

8) Connor, Clark & Lunn Investment Management

9) TD Asset Management

10) CIBC Asset Management

11) Beutel, Goodman & Co

12) Greystone Managed Investments

13) Mackenzie Financial Corporation

14) Great West Life Assurance Co

15) Guardian Capital

16) Scotia Capital

17) AGF Investments

18) Montrusco Bolton

19) CI Investments

20) Venator Capital Management

21) Van Berkom and Associates

22) Formula Growth

23) Hillsdale Investment Management

Pension Funds, Endowment Funds, Sovereign Wealth Funds and the Fed's Swiss Surrogate

Last but not least, I the track activity of some pension funds, endowment, sovereign wealth funds and the Swiss National Bank (aka the Fed's Swiss surrogate). Below, a sample of the funds I track closely:

1) Alberta Investment Management Corporation (AIMco)

2) Ontario Teachers' Pension Plan

3) Canada Pension Plan Investment Board

4) Caisse de dépôt et placement du Québec

5) OMERS Administration Corp.

6) Healthcare of Ontario Pension Plan (HOOPP)

7) British Columbia Investment Management Corporation (BCI)

8) Public Sector Pension Investment Board (PSP Investments)

9) PGGM Investments

10) APG All Pensions Group

11) California Public Employees Retirement System (CalPERS)

12) California State Teachers Retirement System (CalSTRS)

13) New York State Common Fund

14) New York State Teachers Retirement System

15) State Board of Administration of Florida Retirement System

16) State of Wisconsin Investment Board

17) State of New Jersey Common Pension Fund

18) Public Employees Retirement System of Ohio

19) STRS Ohio

20) Teacher Retirement System of Texas

21) Virginia Retirement Systems

22) TIAA CREF investment Management

23) Harvard Management Co.

24) Norges Bank

25) Nordea Investment Management

26) Korea Investment Corp.

27) Singapore Temasek Holdings

28) Yale Endowment Fund

29) Swiss National Bank (aka, the Fed's Swiss surrogate)

Below, CNBC’s Contessa Brewer and Stephanie Link, Hightower Advisors chief investment strategist and portfolio manager, join 'Squawk Box' to break down the latest 13F filings by investment giants including Warren Buffett, David Tepper and Bill Ackman.

And Tom Lee, Fundstrat Global Advisors co-founder and head of research, joins 'Squawk Box' to discuss the latest market trends, what to make of the recent economic data, the Fed's rate path outlook, and more.

Third, Scott Black, Delphi Management president and founder, joins 'Closing Bell' to discuss why he believes the markets are too euphoric, his top value stock picks, and more.

Lastly,someone asked me how it feels trading when there's a really nasty bear market that settles in. Watch "The Round of the Century" Arturo Gatti Vs Micky Ward to get an idea. We're not there yet.

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Pension Pulse

Top Funds' Activity in Q2 2024

Berkshire Hathaway’s portfolio holdings: Where Buffett & Co. are buying/adding

Ulta Beauty (ULTA)

HEICO (HEI-A)

Chubb Limited (CB)

Liberty Sirius XM Series A/C (LSXMA and LSXMK)

Occidental Petroleum (OXY)

Sirius XM Holdings (SIRI)

Berkshire Hathaway’s portfolio holdings: Where Buffett & Co. are selling

Apple (AAPL)

Capital One Financial (COF)

T-Mobile US (TMUS)

Paramount Global (PARA)

Snowflake (SNOW)

Chevron (CVX)

Louisiana-Pacific Corp. (LPX)

Floor & Decor Holdings (FND)

Liberty Live Group A/C (LLYVA and LLYVK)

Top stock holdings in Buffett’s portfolio

Bottom line

New Additions to the Portfolio

Key Position Increases

Complete Exits

Key Position Reductions

Portfolio Overview

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