Hedge-fund Holdings Reveal Tesla Was Hot, Apple Was Not

A recent analysis of hedge fund investments revealed that Tesla Inc. regained its position among the top holdings, while Apple Inc. was one of the most frequently sold-off stocks in the last quarter of 2024.

‍

Pictet, a Swiss private bank, reviewed the fourth-quarter 13F filings from 1,143 hedge funds to analyze the investment patterns of major fund managers. These filings, mandated by the Securities and Exchange Commission (SEC), disclose institutional investors' U.S. equity holdings every quarter.

‍

According to Pictet’s report released on Wednesday, one of the most notable sectoral adjustments in hedge fund portfolios was a 1.1% reduction in exposure to the healthcare sector. This shift may have been driven by concerns over sector-related risks following the nomination of Robert F. Kennedy, Jr. as Secretary of Health and Human Services. Despite the decrease, healthcare remained the sector in which hedge funds held the largest overweight position.

‍

At the same time, hedge funds increased their stakes in the communication and technology sectors by 0.6%. However, they continued to maintain their most significant underweight position in the tech sector overall.

‍

Pictet noted that major technology stocks still dominated the list of the top 25 hedge fund holdings by market value due to their heavy index weightings. These stocks included Microsoft Corp., Alphabet Inc., Amazon.com Inc., Nvidia Corp., Apple Inc., and Meta Platforms Inc.

‍

Among the most significant developments, Tesla re-entered the top 25 after several quarters of absence. Hedge funds increased their collective holdings in the electric vehicle maker by 27%, making it the 13th largest holding in their portfolios.

‍

Other stocks that saw substantial increases in hedge fund ownership included Boeing Co. and Arthur J. Gallagher & Co. Boeing’s holdings among hedge funds surged by 320%, while the insurance company saw an even more dramatic rise of 717%, as multiple funds initiated new positions in these stocks.

‍

Meanwhile, Apple emerged as one of the most “unpopular” stocks among hedge funds based on the number of managers that entirely liquidated their positions. While Warren Buffett’s Berkshire Hathaway added approximately $5 billion worth of Apple shares in the fourth quarter, three hedge funds fully exited their Apple holdings, selling off a combined $1.5 billion.

‍

Similarly, four hedge funds completely divested from GE Vernova Inc., generating $1.2 billion from the sales.

‍

Pictet also examined hedge fund strategies that delivered the highest returns in the fourth quarter. The standout performers were cryptocurrency-focused strategies, which rebounded strongly after struggling in the third quarter. Crypto-related funds posted an impressive 33% return, benefiting from Bitcoin’s rally to record highs following the election of President Trump.

‍

Commodity-focused hedge fund strategies also performed well, delivering gains of nearly 6%. In contrast, long-equity strategies were the weakest performers, declining by 1.7% over the period.

‍