Latest news with #momentuminvesting
Yahoo
4 days ago
- Business
- Yahoo
Hedge funds shift bets to double down on Big Tech amid AI boom
By Anirban Sen and Carolina Mandl NEW YORK (Reuters) -Wall Street's largest hedge funds, Bridgewater Associates, Tiger Global Management and Discovery Capital, increased their exposure to Big Tech in the second quarter amid a generational boom in the growth of artificial intelligence. During the June quarter, hedge funds cut their exposure to laggards in industries like aerospace and defense, and consumer and retail, as part of a broader move back to momentum investing. It marks a big shift from earlier this year when bets on Big Tech had soured for top money managers due to tariff-fueled volatility in financial markets, with investor concerns around rising inflation and fears of a bubble in AI triggering a sell-off in "Magnificent Seven" stocks. Since then, tech stocks have staged a big comeback. The S&P 500 is up 10% so far this year, buoyed largely by the largest tech companies, which account for nearly a third of the combined market cap of companies on the index. Outside technology, some hedge funds, such as Lone Pine and Discovery, also bet on UnitedHealth Group. Berkshire Hathaway and Michael Burry's Scion Asset Management also unveiled bets on the insurer, while Soros Fund Management boosted an existing position. Shares in UnitedHealth are down 46% this year, as the company faces rising costs, a U.S. Department of Justice probe, a cyberattack and the shooting of former top executive Brian Thompson last December. The fund's positions were revealed in quarterly securities filings known as 13Fs. While backward-looking, these filings typically reveal what funds owned on the last day of the quarter and are one of the few ways hedge funds and other institutional investors have to declare their positions. Below are the details of the changes in the holdings of the top hedge funds: BRIDGEWATER ASSOCIATES Bridgewater Associates added more shares in Nvidia, Alphabet and Microsoft in the second quarter. The macro hedge fund founded by Ray Dalio more than doubled its bets in Nvidia. It ended June with 7.23 million shares in the chipmaker, or 154.5% more than it had at the end of March. Nvidia was Bridgewater's biggest bet in a single stock, totaling $1.14 billion. Its holdings in Alphabet and Microsoft went up by 84.1% and 111.9%, respectively, amounting to $987 million and $853 million. Other AI-related stocks added were Broadcom (+102.7%), to 317.8 million shares, or $317 million, and Palo Alto Networks (+117%), to 313.8 million, or $314 million. DISCOVERY CAPITAL Discovery Capital, whose founder Rob Citrone has recently been bullish on Mexico's America Movil due to its exposure to Latin America, doubled its stake in the wireless provider during the second quarter. For the quarter ended June 30, the fund amassed another 2.65 million shares, valuing its current holding in America Movil at about $95 million. Citrone's hedge fund, which generated a 52% windfall on its investments last year, has increased its exposure to Latin America as part of a strategy to diversify from U.S. holdings. During the quarter, Discovery increased its holdings in Big Tech, as it more than doubled its stake in Meta Platforms, the parent company of Facebook, while also betting on booming demand for AI as it took a new position in Nvidia-backed cloud provider CoreWeave. The hedge fund also increased its position in UnitedHealth by 13%. TIGER GLOBAL MANAGEMENT Tiger Global Management bought more stocks in some Magnificent Seven companies in the second quarter, including Alphabet, Nvidia, Microsoft and Meta, its 13Fs showed. Chase Coleman's hedge fund added roughly 4 million shares of Amazon and ended June with roughly 10 million shares, worth $2.34 billion. The fund also increased its bets in smaller AI-players. It added over 800,000 shares in chip-making equipment supplier Lam Research Corp, ending June with 5.26 million shares, valued at $512 million. COATUE MANAGEMENT Many changes in Philippe Laffont's Coatue Management portfolio were also around AI-related stocks. It unveiled new positions in both Arm Holdings and Oracle, adding stakes worth roughly $750 million and $843 million, respectively. Both companies have boosted AI-related business initiatives. Coatue also increased its holdings in Nvidia-backed CoreWeave, adding 3.39 million shares in the second quarter, with its stake in the company worth $2.9 billion. LONE PINE Lone Pine Capital took a new position in UnitedHealth Group, buying up 1.69 million shares worth about $528 million during the June quarter. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNA
4 days ago
- Business
- CNA
Hedge funds shift bets to double down on Big Tech amid AI boom
NEW YORK :Wall Street's largest hedge funds, Bridgewater Associates, Tiger Global Management and Discovery Capital, increased their exposure to Big Tech in the second quarter amid a generational boom in the growth of artificial intelligence. During the June quarter, hedge funds cut their exposure to laggards in industries like aerospace and defense, and consumer and retail, as part of a broader move back to momentum investing. It marks a big shift from earlier this year when bets on Big Tech had soured for top money managers due to tariff-fueled volatility in financial markets, with investor concerns around rising inflation and fears of a bubble in AI triggering a sell-off in "Magnificent Seven" stocks. Since then, tech stocks have staged a big comeback. The S&P 500 is up 10 per cent so far this year, buoyed largely by the largest tech companies, which account for nearly a third of the combined market cap of companies on the index. Outside technology, some hedge funds, such as Lone Pine and Discovery, also bet on UnitedHealth Group. Berkshire Hathaway and Michael Burry's Scion Asset Management also unveiled bets on the insurer, while Soros Fund Management boosted an existing position. Shares in UnitedHealth are down 46 per cent this year, as the company faces rising costs, a U.S. Department of Justice probe, a cyberattack and the shooting of former top executive Brian Thompson last December. The fund's positions were revealed in quarterly securities filings known as 13Fs. While backward-looking, these filings typically reveal what funds owned on the last day of the quarter and are one of the few ways hedge funds and other institutional investors have to declare their positions. Below are the details of the changes in the holdings of the top hedge funds: BRIDGEWATER ASSOCIATES Bridgewater Associates added more shares in Nvidia, Alphabet and Microsoft in the second quarter. The macro hedge fund founded by Ray Dalio more than doubled its bets in Nvidia. It ended June with 7.23 million shares in the chipmaker, or 154.5 per cent more than it had at the end of March. Nvidia was Bridgewater's biggest bet in a single stock, totaling $1.14 billion. Its holdings in Alphabet and Microsoft went up by 84.1 per cent and 111.9 per cent, respectively, amounting to $987 million and $853 million. Other AI-related stocks added were Broadcom (+102.7 per cent), to 317.8 million shares, or $317 million, and Palo Alto Networks (+117 per cent), to 313.8 million, or $314 million. DISCOVERY CAPITAL Discovery Capital, whose founder Rob Citrone has recently been bullish on Mexico's America Movil due to its exposure to Latin America, doubled its stake in the wireless provider during the second quarter. For the quarter ended June 30, the fund amassed another 2.65 million shares, valuing its current holding in America Movil at about $95 million. Citrone's hedge fund, which generated a 52 per cent windfall on its investments last year, has increased its exposure to Latin America as part of a strategy to diversify from U.S. holdings. During the quarter, Discovery increased its holdings in Big Tech, as it more than doubled its stake in Meta Platforms, the parent company of Facebook, while also betting on booming demand for AI as it took a new position in Nvidia-backed cloud provider CoreWeave. The hedge fund also increased its position in UnitedHealth by 13 per cent. TIGER GLOBAL MANAGEMENT Tiger Global Management bought more stocks in some Magnificent Seven companies in the second quarter, including Alphabet, Nvidia, Microsoft and Meta, its 13Fs showed. Chase Coleman's hedge fund added roughly 4 million shares of Amazon and ended June with roughly 10 million shares, worth $2.34 billion. The fund also increased its bets in smaller AI-players. It added over 800,000 shares in chip-making equipment supplier Lam Research Corp, ending June with 5.26 million shares, valued at $512 million. COATUE MANAGEMENT Many changes in Philippe Laffont's Coatue Management portfolio were also around AI-related stocks. It unveiled new positions in both Arm Holdings and Oracle, adding stakes worth roughly $750 million and $843 million, respectively. Both companies have boosted AI-related business initiatives. Coatue also increased its holdings in Nvidia-backed CoreWeave, adding 3.39 million shares in the second quarter, with its stake in the company worth $2.9 billion.
Reuters
4 days ago
- Business
- Reuters
Hedge funds shift bets to double down on Big Tech amid AI boom
NEW YORK, Aug 14 (Reuters) - Wall Street's largest hedge funds, Bridgewater Associates, Tiger Global Management and Discovery Capital, increased their exposure to Big Tech in the second quarter amid a generational boom in the growth of artificial intelligence. During the June quarter, hedge funds cut their exposure to laggards in industries like aerospace and defense, and consumer and retail, as part of a broader move back to momentum investing. It marks a big shift from earlier this year when bets on Big Tech had soured for top money managers due to tariff-fueled volatility in financial markets, with investor concerns around rising inflation and fears of a bubble in AI triggering a sell-off in "Magnificent Seven" stocks. Since then, tech stocks have staged a big comeback. The S&P 500 (.SPX), opens new tab is up 10% so far this year, buoyed largely by the largest tech companies, which account for nearly a third of the combined market cap of companies on the index. Outside technology, some hedge funds, such as Lone Pine and Discovery, also bet on UnitedHealth Group (UNH.N), opens new tab. Berkshire Hathaway (BRKa.N), opens new tab and Michael Burry's Scion Asset Management also unveiled bets on the insurer, while Soros Fund Management boosted an existing position. Shares in UnitedHealth are down 46% this year, as the company faces rising costs, a U.S. Department of Justice probe, a cyberattack and the shooting of former top executive Brian Thompson last December. The fund's positions were revealed in quarterly securities filings known as 13Fs. While backward-looking, these filings typically reveal what funds owned on the last day of the quarter and are one of the few ways hedge funds and other institutional investors have to declare their positions. Below are the details of the changes in the holdings of the top hedge funds: Bridgewater Associates added more shares in Nvidia (NVDA.O), opens new tab, Alphabet (GOOGL.O), opens new tab and Microsoft (MSFT.O), opens new tab in the second quarter. The macro hedge fund founded by Ray Dalio more than doubled its bets in Nvidia. It ended June with 7.23 million shares in the chipmaker, or 154.5% more than it had at the end of March. Nvidia was Bridgewater's biggest bet in a single stock, totaling $1.14 billion. Its holdings in Alphabet and Microsoft went up by 84.1% and 111.9%, respectively, amounting to $987 million and $853 million. Other AI-related stocks added were Broadcom (AVGO.O), opens new tab (+102.7%), to 317.8 million shares, or $317 million, and Palo Alto Networks (PANW.O), opens new tab (+117%), to 313.8 million, or $314 million. Discovery Capital, whose founder Rob Citrone has recently been bullish on Mexico's America Movil ( opens new tab due to its exposure to Latin America, doubled its stake in the wireless provider during the second quarter. For the quarter ended June 30, the fund amassed another 2.65 million shares, valuing its current holding in America Movil at about $95 million. Citrone's hedge fund, which generated a 52% windfall on its investments last year, has increased its exposure to Latin America as part of a strategy to diversify from U.S. holdings. During the quarter, Discovery increased its holdings in Big Tech, as it more than doubled its stake in Meta Platforms (META.O), opens new tab, the parent company of Facebook, while also betting on booming demand for AI as it took a new position in Nvidia-backed cloud provider CoreWeave (CRWV.O), opens new tab. The hedge fund also increased its position in UnitedHealth by 13%. Tiger Global Management bought more stocks in some Magnificent Seven companies in the second quarter, including (AMZN.O), opens new tab, Alphabet, Nvidia, Microsoft and Meta, its 13Fs showed. Chase Coleman's hedge fund added roughly 4 million shares of Amazon and ended June with roughly 10 million shares, worth $2.34 billion. The fund also increased its bets in smaller AI-players. It added over 800,000 shares in chip-making equipment supplier Lam Research Corp (LRCX.O), opens new tab, ending June with 5.26 million shares, valued at $512 million. Many changes in Philippe Laffont's Coatue Management portfolio were also around AI-related stocks. It unveiled new positions in both Arm Holdings and Oracle (ORCL.N), opens new tab, adding stakes worth roughly $750 million and $843 million, respectively. Both companies have boosted AI-related business initiatives. Coatue also increased its holdings in Nvidia-backed CoreWeave, adding 3.39 million shares in the second quarter, with its stake in the company worth $2.9 billion. Lone Pine Capital took a new position in UnitedHealth Group, buying up 1.69 million shares worth about $528 million during the June quarter.
Yahoo
4 days ago
- Business
- Yahoo
Hedge funds shift bets to double down on Big Tech amid AI boom
By Anirban Sen and Carolina Mandl NEW YORK (Reuters) -Wall Street's largest hedge funds, Bridgewater Associates, Tiger Global Management and Discovery Capital, increased their exposure to Big Tech in the second quarter amid a generational boom in the growth of artificial intelligence. During the June quarter, hedge funds cut their exposure to laggards in industries like aerospace and defense, and consumer and retail, as part of a broader move back to momentum investing. It marks a big shift from earlier this year when bets on Big Tech had soured for top money managers due to tariff-fueled volatility in financial markets, with investor concerns around rising inflation and fears of a bubble in AI triggering a sell-off in "Magnificent Seven" stocks. Since then, tech stocks have staged a big comeback. The S&P 500 is up 10% so far this year, buoyed largely by the largest tech companies, which account for nearly a third of the combined market cap of companies on the index. Outside technology, some hedge funds, such as Lone Pine and Discovery, also bet on UnitedHealth Group. Berkshire Hathaway and Michael Burry's Scion Asset Management also unveiled bets on the insurer, while Soros Fund Management boosted an existing position. Shares in UnitedHealth are down 46% this year, as the company faces rising costs, a U.S. Department of Justice probe, a cyberattack and the shooting of former top executive Brian Thompson last December. The fund's positions were revealed in quarterly securities filings known as 13Fs. While backward-looking, these filings typically reveal what funds owned on the last day of the quarter and are one of the few ways hedge funds and other institutional investors have to declare their positions. Below are the details of the changes in the holdings of the top hedge funds: BRIDGEWATER ASSOCIATES Bridgewater Associates added more shares in Nvidia, Alphabet and Microsoft in the second quarter. The macro hedge fund founded by Ray Dalio more than doubled its bets in Nvidia. It ended June with 7.23 million shares in the chipmaker, or 154.5% more than it had at the end of March. Nvidia was Bridgewater's biggest bet in a single stock, totaling $1.14 billion. Its holdings in Alphabet and Microsoft went up by 84.1% and 111.9%, respectively, amounting to $987 million and $853 million. Other AI-related stocks added were Broadcom (+102.7%), to 317.8 million shares, or $317 million, and Palo Alto Networks (+117%), to 313.8 million, or $314 million. DISCOVERY CAPITAL Discovery Capital, whose founder Rob Citrone has recently been bullish on Mexico's America Movil due to its exposure to Latin America, doubled its stake in the wireless provider during the second quarter. For the quarter ended June 30, the fund amassed another 2.65 million shares, valuing its current holding in America Movil at about $95 million. Citrone's hedge fund, which generated a 52% windfall on its investments last year, has increased its exposure to Latin America as part of a strategy to diversify from U.S. holdings. During the quarter, Discovery increased its holdings in Big Tech, as it more than doubled its stake in Meta Platforms, the parent company of Facebook, while also betting on booming demand for AI as it took a new position in Nvidia-backed cloud provider CoreWeave. The hedge fund also increased its position in UnitedHealth by 13%. TIGER GLOBAL MANAGEMENT Tiger Global Management bought more stocks in some Magnificent Seven companies in the second quarter, including Alphabet, Nvidia, Microsoft and Meta, its 13Fs showed. Chase Coleman's hedge fund added roughly 4 million shares of Amazon and ended June with roughly 10 million shares, worth $2.34 billion. The fund also increased its bets in smaller AI-players. It added over 800,000 shares in chip-making equipment supplier Lam Research Corp, ending June with 5.26 million shares, valued at $512 million. COATUE MANAGEMENT Many changes in Philippe Laffont's Coatue Management portfolio were also around AI-related stocks. It unveiled new positions in both Arm Holdings and Oracle, adding stakes worth roughly $750 million and $843 million, respectively. Both companies have boosted AI-related business initiatives. Coatue also increased its holdings in Nvidia-backed CoreWeave, adding 3.39 million shares in the second quarter, with its stake in the company worth $2.9 billion. LONE PINE Lone Pine Capital took a new position in UnitedHealth Group, buying up 1.69 million shares worth about $528 million during the June quarter.
Globe and Mail
25-07-2025
- Business
- Globe and Mail
3 Momentum Anomaly Picks as Markets Hit Record High on the Trot
The broader U.S. equity markets scripted history by continuously hitting record highs over the past few days, buoyed by strong quarterly earnings performance from hitherto-reported firms across all sectors. In particular, solid earnings from blue-chip technology stocks that portrayed the growing clout of AI infrastructure spending induced positive investor sentiments. Moreover, renewed trade deals between the United States and its trading partners for a mutually beneficial tariff policy boosted the markets. Investors now await further clarity on the interest rate cuts with the Federal Reserve slated to meet next week. Amid the vagaries of the market, investors often seek to employ time-tested winning strategies to fetch sustained profits. One of the most successful game plans to beat the blues is to bet on momentum stocks, like Netflix, Inc. NFLX, Robinhood Markets, Inc. HOOD and Affirm Holdings, Inc. AFRM when value or growth investing fails to generate the desired profits. This approach primarily tends to follow the adage, 'the trend is your friend.' At its core, momentum investing is 'buying high and selling higher.' It is based on the idea that once a stock establishes a trend, it is more likely to continue in that direction because of the momentum that is already behind it. Momentum investing is a way to profit from the general human tendency to extrapolate current trends into the future. It is based on that gap in time before the mean reversion occurs, i.e., before prices become rational again. Momentum strategies have been known to be alpha-generative over a long period and across market stages. So, this strategy is quite tricky to implement, as detecting these trends is no child's play. Here, we have created a strategy to help investors get in on these fast movers and rake in handsome gains. Our screen will help you benefit from both long-term price momentum and a short-term pullback in price. Screening Parameters for Momentum Anomaly Stocks Percentage Change in Price (52 Weeks) = Top #50: This selects the top 50 stocks with the best percentage price change over the last 52 weeks. This parameter ensures we get the best stocks that have appreciated steadily over the past year. Percentage Change in Price (1 Week) = Bottom #10: From the above 50 stocks, we then choose those that are also among the 10 worst performers over a short one-week period. This parameter picks the ones that have witnessed a short-term pullback in price. Zacks Rank #1: Stocks sporting a Zacks Rank #1 (Strong Buy) have a proven history of outperformance irrespective of the market conditions. You can see the complete list of today's Zacks #1 Rank stocks here. Momentum Style Score of B or Better: A top Momentum Style Score knocks out a lot of the screening process as it takes into account several factors that include volume change and performance relative to its peers. It indicates when the timing is best to grab a stock and take advantage of its momentum with the highest probability of success. Stocks with a Momentum Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), handily outperform other stocks. Current Price greater than $5: The stocks must all be trading at a minimum of $5. Market Capitalization = Top #3000: We have chosen stocks that are among the top 3000 in terms of market value to ensure the stability of price. Average 20-Day Volume greater than 100,000: A substantial trading volume ensures that these stocks are easily tradable. Here are three stocks out of the five that made it through this screen: Los Gatos, CA-based Netflix is considered a pioneer in the streaming space. The company has evolved from a small DVD-rental provider to a dominant streaming service provider, courtesy of its wide-ranging content portfolio and a fortified international footprint. Netflix streams movies, television shows and documentaries across a wide variety of genres and languages. Domestic and international subscribers can watch them on a host of Internet-connected devices, including television sets, computers and mobile devices. The stock has surged 86.2% in the past year but declined 7.3% in the past week. Netflix has a Momentum Score of A. Headquartered in Menlo Park, CA, Robinhood Markets is a financial services company that offers trading services in crypto, stocks, options, exchange-traded funds, cash management, margin and securities lending and Robinhood Gold. The company aims to democratize finance through its commission-free trading model, which was launched in 2013, with no account minimums. The company serves in the United States, the United Kingdom and selected European Union (EU) jurisdictions through its apps and subsidiaries. The stock has rallied 381.3% in the past year but lost 3.3% in the past week. Robinhood Markets has a Momentum Score of A. Headquartered in San Francisco, CA, Affirm is a financial technology firm specializing in payment solutions that provide consumers with flexible, transparent installment loans — both interest-free and interest-bearing — at the point of sale. By partnering with a diverse range of merchants, Affirm enables customers to pay for purchases over time. The stock has surged 148.7% in the past year but declined 5.2% in the past week. Affirm has a Momentum Score of B. You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your trading. Further, you can also create your own strategies and test them first before taking the investment plunge. The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out. Click here to sign up for a free trial to the Research Wizard today. Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. Disclosure: Performance information for Zacks' portfolios and strategies are available at: #1 Semiconductor Stock to Buy (Not NVDA) The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow. One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Netflix, Inc. (NFLX): Free Stock Analysis Report Affirm Holdings, Inc. (AFRM): Free Stock Analysis Report Robinhood Markets, Inc. (HOOD): Free Stock Analysis Report
