Hedge funds appeared to take profits in a host of winning ” Magnificent Seven ” stocks during the fourth quarter at the end of a blowout year for the septet. Firms from Appaloosa Management to D1 Capital reduced or vacated positions in many popular 2023 stocks, locking in profits ahead of the new calendar year, recent securities filings show. The moves came after a stellar year for the sector in the wake of a crushing 2022. The S & P 500 Information Technology Index surged 49% in the past 12 months, boosted by optimism surrounding the introduction of artificial intelligence and the contribution it’s expected to make to profits. Take a look at how Wall Street played the tech group in the final months of last year. Profit-taking in AI darling Nvidia Chipmaker Nvidia dominated investor enthusiasm in 2023, rallying 239% as market participants bet on its advanced AI processors. That share price appreciation inspired some investors to take profits before year-end. D1 Capital’s Dan Sundheim zeroed out his more than $60 million position in the semiconductor stock during the fourth quarter, while billionaire investor Stanley Druckenmiller shrunk his position by nearly 30%. David Tepper’s Appaloosa Management trimmed its stake by about 23%, while Phillippe Laffont’s Coatue Management and Tiger Global’s Chase Coleman sold about 5% and 13% of their respective Nvidia positions. Still, Nvidia shares rallied 14% in the fourth quarter, extending a 3% gain in the September quarter. The Jensen Huang-led chipmaker locked in the majority of its profits in last year’s first half, but is already up 47% year to date. Nor was Nvidia the only semiconductor maker that hedge funds cut back on in the fourth quarter. Along with Nvidia, Tepper reduced stakes in Advanced Micro Devices , Intel and Qualcomm , while halving his position in Taiwan Semiconductor . Coatue slashed its holding in TSM, a semiconductor manufacturer and foundry by 87%, while Viking Global’s Ole Andreas Halvorsen…
2024-02-19 08:54:00
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