Here's What Hedge Funds Bought in Q1 2024
Nvidia, Druckenmiller, an options-trading sovereign wealth fund, and more
With another 13F deadline past us, retail investors are now able to view the equity and options positions of hedge funds as of the end of Q1. Hedge funds are required to submit a 13F 45 days after the end of each quarter.
The latest batch of Form 13Fs revealed several noteworthy trades, such as Stanley Druckenmiller selling 71% of his Nvidia NVDA 0.00%↑ position and Warren Buffett disclosing his secret holding as Chubb CB 0.00%↑, an insurance company. The 13Fs also revealed a set of peculiar options trades from a sovereign wealth fund, but more on that later.
Let’s first take a look at the Tiger Cubs, the most well-known group of hedge funds on Wall Street.
Tiger Cubs 13F Activity
For the Tiger Cubs, Amazon AMZN 0.00%↑ was the only holding with an ownership rating of 100% while Nvidia commanded the highest average portfolio weight of 10.53%.
Among the Nvidia holders, Coatue, Light Street, and Matrix decreased their positions by 68%, 21%, and 20%, respectively, while Maverick increased its position by 6%. Tiger Global kept its stake unchanged.
Based on my overview of the 50+ hedge funds that I track, it’s clear that the Q4 buying spree of Nvidia did not continue into Q1. Other hedge funds outside of Tiger Cubs that reported large NVDA sales include Baillie Gifford, D.E. Shaw, and Point72.
On the other side of the trade was Alex Sacerdote’s Whale Rock, which increased its NVDA stake by 62%, cementing the company as its largest position. Whale Rock also added new stakes in Micron MU 0.00%↑, Marvell MRVL 0.00%↑, and Coherent COHR 0.00%↑.
Instacart CART 0.00%↑ stands out like a sore thumb on the list. Every other company, except Workday WDAY 0.00%↑ with its $65 billion market cap, has a market cap of at least $150 billion. Dan Sundheim’s D1 Capital has 16.4% of its 13F portfolio invested in CART, although this is attributed to the hedge fund investing privately before the Instacart IPO.
The grocery delivery company caught my eye last quarter due to its high Tiger Cub ownership, although I decided to pass on investing after conducting my own research. That was a mistake, as CART is up by 37% YTD.
Taiwan Semiconductor TSM 0.00%↑ is an interesting pick as well due to the risk of a Chinese invasion of Taiwan. However, its consensus rating of 62.50%, the same as Nvidia, makes it clear that the group believes that this scenario will likely not happen in the near-term. TSM’s 51% YTD return backs that up.