For Better Or Worse, These Are The Stocks Hedge Funds Bought And Sold In Q1 2022

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Forty-five days after the end of each quarter, hedge funds are required to have at least $100 million in assets under management report their holdings at the end of the quarter. Many investors plan their strategies based on what the most famous hedge funds are buying, but this may not be the best strategy right now.

It’s no secret that most hedge funds are struggling in 2022, but it’s still a good idea to see what they’re buying and selling. The price rotation narrative has been going on for at least several quarters, and the buys and sells recorded during the first quarter reflect a continuation of this trend.

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However, they also show that hedge funds generally won’t give up on Big Tech, even though most of those companies have beaten them. Thus, any story focused on a rotation from rise to value should have a warning of “except in”.

General Q1 Trends

In their most recent Hedge Fund Trend Monitor, analysts at Goldman Sachs pointed out that hedge funds There is less swaying now towards information technology and consumer discretionary than at any time in the last decade. On the other hand, they are more inclined towards industrialists than at any time in the last 10 years.

In general, hedge funds moved away from “big tech” companies with Apple
Leading the decline in exposure. However, the most popular places on Wall Street are Big Tech names with FAAMG names (Facebook parent meta platform, Apple, Amazon
and google
Parent Alphabet) consistently holds the top five most popular hedge fund stocks.

It’s easy to see why hedge funds are struggling so much, given that FAAMG shares have fallen this year, down 22% to 43% in the first three months of the year. However, since most stocks have declined this year, it has been extremely difficult but not impossible to choose positions wisely.

Only one of the top 10 most popular hedge fund positions has been in the green for a year, and that is T-Mobile US All. But some of the top 50 positions among hedge funds have declined significantly. Activision Blizzard is among the 50 most popular stocks that have done notably well this year
Chenier Energy, EQT
Corporation, Occidental Petroleum
Valaris, AT&T
and Chesapeake Energy

According to Bloomberg, investors reduced their stake in technology companies by 1.4% during the first quarter, with Microsoft leading the sale despite its position as the number one most popular stock among hedge funds. Investors decreased their consumer discretionary and communications loads by 0.8% each, but increased their loads in energy by 1.2%.

Loading up on Big Tech

Many hedge funds bought some technical stock Which led to a fight. For example, Sachem Head bought Salesforce and Opendoor Technologies. Appaloosa raises stake in Uber
, Amazon and Microsoft. At the same time, Coatue Management established a new position in advanced micro equipment
and enhanced its position in Square, Peloton, DoorDash
A and Uber. Corvex Management increased its position in Amazon and Uber, while Duquesne increased its position in Microsoft and T-Mobile.

Stephen Mandel’s Lone Pine Capital established a new position in Meta Platforms and increased its stake in Square and Microsoft. Lee Ainslie’s Maverick Capital bought shares of Square and increased its stake in T-Mobile.

George Soros established a new position at Zynga and added his stake in Alphabet and Salesforce. Bill Ackman’s Pershing Square buys shares of Netflix
During the first quarter, though the worker said last month that he had since taken off the position.

Paul Singer’s Elliott Investment Management added its position in Twitter, while Viking Global increased its stake in Microsoft. John Paulson increased his stake in Didi and Alibaba.

Big Tech Unloading

On the other hand, even more funds dumped Big Tech in huge amounts. Soroban Capital offloaded a large number of Big Tech shares, exiting the meta platform and Netflix, cutting its stake in Microsoft. Interestingly, its only new position was a consumer discretionary stock, Yum! brand. Appaloosa has also reduced its position to a few tech names, including Meta Platforms and Alphabet.

Seth Klarman’s Bopost increased its stake in Alphabet but slashed its position in the meta platforms, while Coteau cut its stakes in Rivian, Amazon and PayPal. Corvex exited Salesforce, T-Mobile and Zynga while cutting its stake in Alphabet and Microsoft. Duquesne exited Alphabet and Airbnb during the first quarter, reducing its positions in Booking Holdings, Snap and Expedia.

Elliott exited Dell, while David Einhorn’s Greenlight Capital exited Twitter and slashed its stake in GoPro. Lone Pine exited Adobe Systems and Snowflake to reduce its position in Shopify, Snap and DoorDash. Maverick Capital exited Activision Blizzard, having a top performer year to date, and reduced its positions in Coupang, Netflix, Meta Platform and Adobe Systems.

Soros reduced his position in Microsoft by exiting Apple, Alphabet and Activision Blizzard, while Dan Loeb’s Third Point cut his bets in Amazon, Microsoft and Rivian by exiting Alphabet and Upstart Holdings. Tiger Global left Netflix, Adobe Systems, Coupang and PayPal and reduced its positions to meta platforms, DoorDash, Uber Technologies and Amazon.

Viking Global exits Twilio
and Peloton and Take-Two Interactive, and reduced their positions in the meta platform.

other changes

Interestingly, Carl Icahn slashed his exposure by 40% to Cheniere Energy, which is one of the top 50 most popular stocks among hedge funds and is having a significant outperformer year. He also exited Occidental Petroleum, another popular hedge fund stock and a significant year-to-date outperformer.

Icahn’s only new position was a consumer discretionary name: International Flavors & Fragrances. The company is Sachem Head Capital’s largest position, though it eased position slightly during the first quarter.

George Soros exits General Motors
Uber Technologies and Lithia Motors, although they did not sell any shares of Rivian Automotive, remain their largest positions.

Trian Fund Management dropped out of Comcast
and established a stake in Mondelez International
, David Tepper’s Appaloosa Buys Las Vegas Sands and Wynn Resorts Shares
, Tepper said earlier this month that they short-covered their Nasdaq. Their funds exited 12 of their positions during the first quarter, including T-Mobile US and GM.

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