WHALES: The 13F first quarter portfolio updates of the highest profile US fund managers, from Warren Buffett to Stanley Druckenmiller, gives insight into their thinking and is fertile ground for new ideas. It showed some rotation away from tech and adding of risk and diversification, from US small caps to China and insurers. Whilst retail investors, proxied by eToro platform data, held on to their big tech winners, never gave up on China, and are also diversifying, to weight loss and Europe. A basket of the top retail Q1 buys, Super Micro (SMCI) to Eli Lilly (LLY), is up 50% this year vs a 4% decline for the Whales buys, of Alphabet (GOOGL) to Starbucks (SBUX).
CHANGES: Buffett’s Berkshire Hathaway (BRK.b) took a big new position in insurer Chubb (CB) and continued to trim its huge Apple (AAPL) stake. With many others, except Bridgewater Associates, also cutting back on big tech winners. Drukenmiller’s Duquesne took a bullish wager on lagging and cheap US small caps (IWM). David Tepper’s Appaloosa an all-in bullish stance on China’s Alibaba (BABA) to Pinduoduo (PDD). Pershing’s Bill Ackman trimmed his largest stock Chipotle (CMG) but held firm on the rest of his focused portfolio from Hilton (HLT) on. Whilst Gates Foundation saw no new buys. See @StanleyDruck13F to @BillAckman13F.
13F’s: May 15th was the Q1 disclosure deadline for US fund managers to report their holdings in a so-called 13F filing to the SEC. This comes 45 days after the quarter ends. The next reporting date is August 14th, of Q2 positions. This data has many uses but it’s also important to understand its limits. 1) You only see the fund’s long positions, and not the potentially offsetting short positions. 2) Only stock holdings, not those in other asset classes, like commodities or FX or crypto. 3) It works best for managers with low portfolio turnover, given the 45-day reporting delay. 4) And by focusing on the larger positions, as a reflection of the fund manager conviction.
All data, figures & charts are valid as of 15/04/2024.