This week, prominent investors like Warren Buffett and Michael Burry made attention-grabbing revisions to their stock portfolios. Details about their holdings became apparent through filings with the Securities and Exchange Commission.
Presented below are four significant transactions that transpired during the second quarter:
Warren Buffett:
During the previous quarter, Berkshire Hathaway, led by Warren Buffett, initiated positions in three homebuilding companies: Lennar, NVR, and DR Horton. Collectively, these holdings amounted to $814 million, a modest venture given Berkshire’s extensive $350 billion stock portfolio.
The acquisitions are believed to have been orchestrated by Buffett’s portfolio managers, Todd Combs and Ted Weschler, due to their magnitude. Their selections indicate optimism regarding the US housing market, notwithstanding its current historic affordability challenges due to elevated mortgage rates.
Additionally, Buffett’s renowned conglomerate increased its investments in Capital One and Occidental Petroleum. Conversely, it divested from McKesson, Marsh & McLennan, and Vitesse Energy during the same period.
Furthermore, Buffett and his team downsized their positions in Activision Blizzard, Chevron, Celanese, General Motors, and Globe Life.
Michael Burry:
This week, Michael Burry disclosed that he possessed bearish put options on S&P 500 and Nasdaq-100 index funds, boasting a notional value of $1.6 billion by the close of June.
Burry, renowned for his involvement in “The Big Short,” might have acquired these puts as safeguards, counteracting his considerable acquisitions in energy and shipping stocks during the preceding quarter. However, these moves could also serve as an indication of his anticipation of a potential stock-market downturn. This interpretation aligns with his persistent alerts concerning an unprecedented asset price bubble and his forecasts of a substantial market decline.
Bill Ackman:
In the second quarter, Bill Ackman increased his engagement with AI-related assets. Through his Pershing Square fund, he acquired approximately 1.3 million shares of Alphabet’s Class C stock during this period, augmenting the value of the fund’s holdings to $1.1 billion by the end of June. Additionally, the fund maintained a position in Alphabet’s Class A shares, which amounted to around $262 million in value.
Furthermore, Ackman and his team expanded their investments in Hilton Worldwide and Howard Hughes. Conversely, they made reductions in their holdings of Canadian Pacific Railway, Chipotle, Lowe’s, and Restaurant Brands.
Alphabet, a prominent player in the AI arena, continues to fortify its presence by investing in its Bard chatbot and enhancing the intelligence of its search engine and advertising services.
Nvidia:
In the last quarter, numerous prominent investors and funds demonstrated their confidence in Nvidia’s potential by increasing their involvement in the company’s stock. They placed their bets on the continuous growth of the artificial intelligence sector, which in turn would drive the demand for graphics chips.
During this period, key figures such as Dan Loeb’s Third Point, Soros Fund Management, and Jeremy Grantham’s GMO all initiated positions in Nvidia.
Additionally, a group of influential investors amplified their Nvidia holdings. This group included David Tepper’s Appaloosa Management, Jim Simons’ Renaissance Technologies, Paul Tudor Jones’ Tudor Investment Corporation, Steve Cohen’s Point72 Asset Management, Stanley Druckenmiller’s Duquesne Family Office, and the investment division of the Church of Jesus Christ of Latter-day Saints.
For instance, Renaissance Technologies magnified its investment by nearly 600 times, securing a stake that was valued at almost $800 million by the end of June. Appaloosa Management also bolstered its position by almost 600%. Tudor Investment Corporation quadrupled its Nvidia stake and additionally held bullish call options on nearly 600,000 shares of the chipmaker as the quarter came to a close.
