The billionaire-tracking iBillionaire Index has reached the one-year mark, generating attractive returns in the process. Since inception through market close on the 14th of November, it’s climbed +16.48%.
This week also marks the quarterly rebalance of the iBillionaire Index, which serves as a sort of barometer for where the smart money is going. So what’s trending among Wall Street’s best and brightest?
Baupost's investment process involves "never-ending" gleaning of facts to help support investment ideas Seth Klarman writes in his end-of-year letter to investors. In the letter, a copy of which ValueWalk has been able to review, the value investor describes the Baupost Group's process to identify ideas and answer the most critical questions about its potential Read More
Netflix (NASDAQ:NFLX) exited the index as billionaires lost interest in the media streaming company. Chase Coleman’s Tiger Global cashed out of its position, as did Julian Robertson, and Carl Icahn reduced his stake to one of 1.4 million shares (a year ago, he reported 5.5 million).
Comcast (NASDAQ:CMCSA) was removed from the iBillionaire Index as well. Both Tiger Global and David Tepper sold off their CMCSA stakes, and George Soros scaled back his.
Facebook (NASDAQ:FB) made its first iBillionaire Index appearance, drawing interest from Julian Robertson, David Tepper, Steve Mandel, George Soros and Ray Dalio. The index also added components on the road and in the air, with General Motors (NYSE:GM) and Delta Air Lines (NYSE:DAL) joining.
Tech Rules as Health Care Interest Rises
Technology and consumer discretionary remain billionaires’ most popular sectors for investing, including companies like eBay (NASDAQ:EBAY), Priceline (NASDAQ:PCLN) and 21st Century Fox (NASDAQ:FOXA).
That being said, interest in health care is clearly on the rise. Thermo Fisher Scientific (NYSE:TMO), Humana Inc. (NYSE:HUM) and Tenet Healthcare (NYSE:THC) joined the index, driven largely by Larry Robbins, who holds positions in all three.
The health sector has been a major proponent of Robbins’ investment strategy since 2004. His strategy is closely tied to political dynamics and has been propelled even more since Obamacare came into play in 2010. The billionaire’s bets have played off in a big way, rendering him one of the hottest hedge fund managers in recent years.
Despite Uncertainty, Billionaires Aren’t Backing Down
Market volatility has reared its ugly head in recent weeks, and billionaire investors have risen to the occasion.
David Einhorn and Warren Buffett have confessed to taking advantage of market movements to do a bit of buying. Quarterly 13F filings show Brazilian billionaire Jorge Lemann taking a bullish turn on the S&P. And the iBillionaire Index evidences where leading financial minds are placing their biggest bets.