Hedge funds added exposure to technology giants including Microsoft Corp. and Netflix Inc. in the second quarter, a stretch that saw an initial surge in volatility due to President Donald Trump’s trade policies but ultimately ended with major benchmarks posting significant gains.
Hedge fund holdings of Microsoft grew by $12 billion to $47 billion in the three months ending June 30, according to Bloomberg analysis of data from 13F filings, a result of both net buying and the company’s surging stock price. Shares in the software giant edged higher, rising 0.4% in premarket trading on Friday.
In other notable changes, billionaire investors Warren Buffett and David Tepper scooped up shares of UnitedHealth Group Inc. as the conglomerate tumbled nearly 40% in the second quarter, the filings show. Shares in the health insurer rose as much as 14%.
The value of hedge funds’ combined investment in China technology giant Alibaba Group Holding Ltd. dropped $1.55 billion, the biggest decrease by market value of any holding.
The portfolio reshuffling came amid a dramatic reversal for US stocks. While Trump’s early April tariff announcements triggered an initial selloff, it was quickly followed by a dramatic rally fueled by constant deadline extentions and a resiliant US economy. By the end of June, the S&P 500 Index closed out its best quarter since December 2023 after a roughly 25% surge from its April lows, while the tech-heavy Nasdaq 100 Index had its best stretch in over two years.
Bloomberg has so far analyzed 13F filings by 716 hedge funds. Their combined holdings amounted to $726.54 billion, compared with $622.94 billion held by the same funds three months earlier.
Technology accounted for the biggest weighting in their portfolios, at 23%, followed by financials, at 17%. The value of investments in energy rose the least of any sector.
Elsewhere:
- Bridgewater Associates LP sold 5.66 million shares in Alibaba Group Holding Ltd, the biggest reduction by the investor group; Coatue Management LLC sold 2.93 million shares
- Arrowstreet Capital LP sold 21.2 million shares in Petroleo Brasileiro SA - Petrobras, the biggest reduction by the investor group; Oaktree Capital Management LP sold 2.66 million shares
- Bridgewater Associates LP added 905,622 shares in Microsoft, the largest increase; Walleye Capital LLC added 882,930 shares
- D1 Capital Partners LP added 14.33 million shares in NU Holdings Ltd/Cayman Islands Class A, the largest increase; Renaissance Technologies LLC added 12.21 million shares
- Meta Platforms Class A was cut or reduced by 147 investors, the biggest such number; Amazon.com was increased or initiated by 177 investors, the biggest tally
- Microsoft was the most valuable overall holding at $46.83 billion
Companies that were involved in M&A deals, spin-offs, IPOs and SPAC plays during the quarter were excluded from the story. The data are preliminary and may be impacted by amended 13F filings. Market value changes are adjusted for corporate actions such as normal cash dividends.
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