Druckenmiller, Tepper Adjust Bets Amid $11T Tech Rally

Billionaire-led firms adjust tech holdings, Druckenmiller and Tepper scale back on 'Magnificent Seven' amid market rally.

By Alex P. Chase

5/16, 10:53 EDT
Apple Inc.
Amazon.com, Inc.
Chubb Limited
Alphabet Inc.
Goldman Sachs Group, Inc.
iShares Russell 2000 ETF
Meta Platforms, Inc.
Microsoft Corporation
NVIDIA Corporation
Pacific Gas & Electric Co.
Shopify Inc.
Tesla, Inc.

Key Takeaway

  • Druckenmiller and Tepper adjust tech holdings, reducing stakes in Nvidia, Amazon, Microsoft, and Meta among the "Magnificent Seven."
  • Amid a tech-led US stock rally adding $11 trillion in value since October, insiders sell high-performing shares.
  • Diverse strategies seen: Druckenmiller bets on Russell 2000 with call options; Buffett reveals a $6.7 billion stake in Chubb Ltd.

Tech Stock Adjustments

Investment firms led by billionaires such as Stanley Druckenmiller and David Tepper have recently adjusted their positions in the technology sector, specifically within the group known as the “Magnificent Seven.” These stocks, including giants like Alphabet, Apple, Tesla, Microsoft, Amazon, Meta, and Nvidia, have been pivotal in driving the US stock rally this year. Druckenmiller’s Duquesne Family Office reduced its stake in Nvidia by over 441,000 shares, now valuing its investment at approximately $159 million. Similarly, Tepper’s Appaloosa has scaled back its investments in Amazon, Microsoft, and Meta Platforms, although these companies remain significant holdings within its portfolio.

David Bonderman’s Wildcat Capital Management and Michael Platt’s BlueCrest Capital Management have also made notable adjustments. Wildcat reduced its Meta stock to a value of $23.7 million, and BlueCrest exited its positions in Nvidia and Amazon while trimming its stake in Alphabet.

Market Movements and Strategic Bets

These strategic portfolio adjustments come at a time when insiders have been selling shares of these high-performing tech stocks, many of which have reached new highs recently. The US equities market has seen a resurgence, regaining $11 trillion in value since late October, largely thanks to the performance of these tech giants. The regulatory filings, known as 13Fs, provide a rare glimpse into the investment strategies of secretive money managers, including hedge funds and large family offices, though they only reveal a part of the firms’ overall positioning.

In a notable move, Stanley Druckenmiller’s firm has placed a significant bet on the Russell 2000, investing 15% of its portfolio in call options on the iShares Russell 2000 ETF. This indicates a pivot towards small-cap stocks, which have underperformed compared to their larger counterparts in recent years.

Diverse Investment Strategies

The filings also highlighted other strategic investments by prominent firms. Iconiq Capital, known for managing Mark Zuckerberg’s wealth, initiated a new position in Shopify Inc. worth $72 million. Warren Buffett’s Berkshire Hathaway disclosed a $6.7 billion stake in Chubb Ltd., a detail previously kept confidential by the SEC. George Soros’s Soros Fund Management diversified its portfolio by adding positions in Goldman Sachs Group Inc. and utility PG&E Corp, while exiting investments in Las Vegas Sands Corp. and Birkenstock Holding Plc.