Bridgewater disclosed changes to its portfolio in documents submitted to the U.S. Securities and Exchange Commission (SEC).
The world's largest hedge fund, Bridgewater, recently made significant adjustments to its technology stock investments.
Bridgewater reduced its holdings in Nvidia (NVDA.O) stock in the third quarter while increasing its positions in Supermicro (SMCI.O), Palantir (PLTR.N), and AMD (AMD.O). The fund disclosed these stock transactions in documents submitted to the U.S. Securities and Exchange Commission. Bridgewater has not commented on these changes.
The business magazine Pensions & Investments estimates that Bridgewater's assets total $972 billion, surpassing any other fund.
Bridgewater sold 1.8 million shares of Nvidia stock, holding 4.8 million shares of this AI chip manufacturer at the end of the third quarter. In the first nine months of 2024, Nvidia's stock price increased by 145%, while the S&P 500 index rose by 21%. So far, the stock price has risen by 14% in the fourth quarter, while the S&P 500 index has increased by 4.7%.
Despite Nvidia's strong financial report for the third quarter of fiscal year 2023 (ending October 27), President-elect Donald Trump has indicated that tariffs on China, Canada, and Mexico will be raised, which may cause issues for Nvidia's supply chain.
Meanwhile, changes are occurring in the artificial intelligence sector, and success will expand to companies beyond Nvidia.
SMCI hopes to benefit more from the demand for artificial intelligence through its servers, but the stock price has fallen from its peak in March. The company's accountant resigned in October, and it postponed the release of its financial report, causing it to fail to meet Nasdaq's listing requirements. SMCI has submitted a revised plan.
SMCI's year-to-date increase was 46% at the end of September. As of the fourth quarter, the stock price has fallen 22%. Considering the 10-for-1 stock split that took place in early October, Bridgewater purchased 1,453,270 shares in the third quarter, increasing its total holdings to 1,611,040 shares.
Bridgewater purchased another 437,268 shares of Palantir stock, bringing its total holdings to 523,548 shares by the end of the third quarter.
Since Palantir was included in the S&P 500 index in September, its stock price has risen, and the increase early in 2024 has further expanded. The company's performance is strong and it states that the demand for artificial intelligence is 'unwavering.' In the past week, Palantir moved its stock listing from the New York Stock Exchange to Nasdaq and expects to join the Nasdaq 100 index.
Palantir's stock soared 117% in the first nine months of 2024. As of the fourth quarter, the stock price has risen 80%.
AMD's stock price has slightly increased by 11% in the first three quarters. So far, the stock price has fallen by 16% in the fourth quarter.
The disappointing outlook at the end of October overshadowed a strong third-quarter financial report. In mid-November, AMD announced it would lay off 4%, about 1,040 employees. AMD stated that this move is 'to align our resources with the greatest growth opportunities.'
Bridgewater purchased 364,292 shares of AMD stock, bringing its total holdings to 1.5 million shares by the end of the third quarter.
Article reposted from: Jin Ten Data