© Reuters. FILE PHOTO: Traders work on the ground on the New York Stock Exchange (NYSE) in New York City, U.S., October 26, 2023. REUTERS/Brendan McDermid/File Photo
By Svea Herbst-Bayliss
NEW YORK (Reuters) -Several hedge funds expanded their bets on large know-how shares together with Amazon (NASDAQ:), Microsoft (NASDAQ:) and Meta Platforms (NASDAQ:) whilst these firms stumbled some through the third quarter after having fueled broad market good points this yr, new regulatory filings present.
Tiger Global Management, a extensively watched fund within the funding world, elevated its holding of Nvidia (NASDAQ:), whose semiconductors again artificial-intelligence programs, by 77% through the third quarter. It boosted its guess on Alphabet (NASDAQ:) by 40%, the filings present.
The agency additionally raised its Meta funding by 4%, boosted its guess on Microsoft by 8% and elevated its Amazon stake by 6.5%.
Tiger Global and different hedge funds nursed heavy losses in 2022 when know-how shares skidded decrease. But many fund managers put extra money to work within the sector this yr when seven large tech shares raced increased, taking part in a essential position in serving to the broader inventory market recuperate after final yr’s drop.
Bill Ackman, whose Pershing Square Capital Management is extensively adopted for funding clues, reported elevating his stake in Alphabet Inc. Class A shares by practically 100% to personal 4.4 million shares on the finish of the quarter.
Daniel Loeb’s Third Point mentioned in a submitting that it made a brand new guess on Meta, proudly owning 1.1 million shares on the finish of the quarter.
Coatue Management, based by Philippe Laffont, elevated its place in Meta by 9% to personal 6.2 million shares on September 30, the filings present.
Glen Kacher’s Light Street Capital elevated its place in Amazon by 5% after having reported a brand new place within the on-line retailer within the second quarter.
Ratan Capital Management reported even larger will increase, saying it elevated its Amazon holding by 72% and boosted its Meta stake by 67%. The fund additionally reported a brand new place in Alphabet, saying it owned 20,000 shares on September 30.
Goldman Sachs reported in late August that hedge funds held report publicity to the seven greatest tech shares by market capitalization.
2023 has been a greater yr for buyers, with the inventory market index up 18% since January after a 20% drop in 2022. The rally has been largely fueled by a small variety of firms – the so-called magnificent seven.
Since January, Meta’s share worth has surged 169% whereas Amazon gained 70% and Microsoft is up 53%.
Investment managers should disclose what they maintain in U.S. shares on the finish of every quarter and report that info to the Securities and Exchange Commission 45 days after the top of the quarter. The deadline for so-called 13-F filings for the third quarter is on Tuesday.
While 13-F filings are backward-looking, they’re intently watched by buyers for developments.
But buyers, a lot of whom suffered large losses solely final yr, additionally confirmed warning through the third quarter when markets stumbled some and sure tech shares misplaced some floor.
Light Street reduce its stake in Meta by 31% after having elevated it 27% within the second quarter and Coatue reduce its stake in Microsoft by 28% and lowered its stake in Amazon by 15%.
Representatives for the funds didn’t instantly reply to requests for remark.
