It’s that time of the year again. Yesterday the world’s largest hedge funds reported their most recent position statements within fourth-quarter 13F filings with the SEC. Below is a 13F Roundup for some high profile names.
These statements are generally seen as a barometer of hedge fund sentiment, even though they are filed several weeks after the end of the quarter to which they relate.
Still, the most recent set of fund filings reveals that money managers jumped on the Trump bandwagon during the last three months of 2016 by boosting their stakes in financial companies and reducing their holdings in technology firms, which have been popular for the past few years.
13F Roundup: Hedge Funds Dump Tech Buy Banks
13F Roundup data compiled by Bloomberg highlights the degree of the shift from tech to financials by hedge funds during the quarter. The largest shift comes from Stephen Mandel’s Lone Pine Capital, which spent $493 million on PayPal Holdings, $491 million on PNC Financial Services and a $479 million stake in Bank of America Corp.
Dan Loeb’s Third Point Capital was also a big spender on financials during the fourth quarter. The fund invested $453 million in JP Morgan, $387 million in Bank of America and just under $95 million in Goldman Sachs.
Blue Ridge invested $308 million in Bank of America, $39 million in Goldman Sachs, $85 million in Citigroup and 306 million in the scandal hit Wells Fargo. Lansdowne Capital acquired $673 million in Bank of America stock and $235 million in JP Morgan.
Running against the rest of the herd, Pointstate divested $185 million in Bank of America stock and $100 million in Citigroup stock. The fund acquired $226 million in Wells Fargo and $82 million Morgan Stanley.
On the tech side, Viking Global and Point72 aggressively sold down holdings in Amazon, Apple, and Facebook while adding to stakes in Microsoft. Together these two funds dumped $1.4 billion in Amazon stock, just over $500 million of Facebook equity and $150 million of Apple shares. Chase Coleman’s Tiger Global Management and Aaron Cowen’s Suvretta Capital Management sold stakes in Apple worth $407.6 million and $293.9 million at the end of last year.
Nonetheless, despite sales by these super investors, shares in Apple were one of the most purchased positions by hedge funds last quarter. According to data from dataroma.com, of the 64 top super investor funds monitored by the site, out of the 54 funds that have already reported five acquired new stakes in Apple making it the joint second most popular position with a Visa Inc. The most popular position by the number of buys is Allergan Plc. Notable investors who acquired Apple during the fourth quarter included David Einhorn’s Greenlight Capital, which boosted its position by 11.8% to 5.8 million shares or 14.1% of the overall portfolio and Warren Buffett’s Berkshire Hathaway which increased its Apple position by 277% to 57.4 million shares, 4.5% of the overall portfolio.
Interestingly, according to Dataroma 13F Roundup figures, more hedge funds sold shares in Berkshire Hathaway during the fourth quarter than any other stock. Wells Fargo was the second most sold equity in terms of percentage of the overall portfolio. Seth Klarman’s Baupost Group and David Tepper’s Appaloosa Management were the largest buyers of Allergan during the quarter. Tepper increased his stake by 250% to 4.3 million shares and Klarman increased by 71.5% to 3.4 million shares. Klarman also reduced his position in Cheniere Energy by 22%.
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