- Advertisement -
- Advertisement -

Related

US Hedge Funds bet on continued expansion, trimmed FAANGs

Report: Alternative Fixed Income

- Advertisement -

Stockholm (HedgeNordic/Reuters) – According to regulatory filings made public on Tuesday and reported by Reuters, US hedge funds took on big bets that the US economy would continue to expand in the second quarter buying cyclical stocks in retailers and tech, despite increased trade tensions between the US and China.

Third Point, an 18 billion dollar hedge fund managed by Daniel Loeb, added new positions in payment companies Paypal and Visa, both of which were up more than 19 percent year to date. Greenlight Capital, run by billionaire investor David Einhorn, added new positions in low-to-middle income retailers including Dollar Tree, Dollar General, Gap, and TJX Companies, the parent company of discount retailers TJ Maxx and HomeGoods.

Activist fund Jana Partners added shares of broad-based exchange-traded funds that track the S&P 500 and the Russell 2000 indexes and took new positions in Wells Fargo and food delivery company GrubHub.

While adding to cyclical companies overall, US hedge funds at the same time trimmed their exposures to the so-called FAANG (Facebook, Apple, Amazon, Netflix and Google parent Alphabet) stocks.

Third Point sold all of its stake in Alphabet and divested 1 million shares of Facebook, reducing its position in the company by 25 percent. At the same time, it increased its stake in Microsoft by nearly 310 percent, buying 1.7 million shares.

Omega Advisors, meanwhile, sold all of its position in Netflix and added new holdings in biotechnology companies including Madrigal Pharmaceuticals and Deciphera Pharmaceuticals.

A number of hedge funds sharply cut their stake in Apple only weeks before it became the first publicly traded US company to be worth more than US$1 trillion.

Among the most noteworthy changes were Einhorn’s Greenlight Capital slashing its stake by 77 percent, while Philippe Laffont’s Coatue Management got rid of 95 percent.

Picture source: Pixabay

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

HedgeNordic Editorial Team
HedgeNordic Editorial Team
This article was written, or published, by the HedgeNordic editorial team.

Latest Articles

Nordic Fund Boutiques Building Strength Through Consolidation

The Nordic asset management industry is experiencing an accelerating wave of consolidation, particularly among boutique firms, including those with roots in the hedge fund...

Hafnium Navigates Early Stress Test Following March Launch

Timing a hedge fund launch is never easy and getting it right can be make-or-break for long-term success. French-Danish duo Alexis Dubois and Victor...

Ex-Velliv PM Joins Lærernes Pension

After Danish pension provider Velliv dismissed its entire alternatives team earlier this year as part of a broader strategic shift towards passive strategies, its...

Bitcoin-Focused Anna Secures Full AIFM License

Anna Asset Management, which runs a momentum-driven strategy focused on Bitcoin futures, has been granted a full license as an alternative investment fund manager...

Bright Spots Emerge Amid Difficult March for Nordic Hedge Funds

Although March already feels like a distant memory amid the turbulence of April, Nordic hedge funds also faced a challenging month back then. All...

Mandatum Managed Futures Maintains Momentum

Mandatum Managed Futures Fund was named the “Best Nordic Managed Futures Fund” at the Nordic Hedge Award for the second year in a row,...

Allocator Interviews

In-Depth: Megatrends

Voices

Request for Proposal

- Advertisement -