According to a review of the positions of the industry, Apple Inc. was one of the most “unpopular” companies, while Tesla Inc. was once again among the top hedge-fund holdings towards the end of last year.
The Swiss private bank Pictet examined 1,143 hedge funds’ fourth-quarter 13F filings from 2024 to determine the activities of the major managers. Institutional investment managers are required by the Securities and Exchange Commission to submit quarterly Form 13F filings listing the U.S. stock assets they are managing.
In a note released on Wednesday, Pictet noted that a 1.1% decrease in hedge funds’ exposure to healthcare was one of the largest sectoral movements throughout the time frame.
It happened “potentially as a consequence of perceived sector risk associated with the nomination of Robert F. Kennedy, Jr. as Secretary of Health and Human Services,” Pictet stated. However, healthcare still accounted for the largest portion of the funds.
Although the funds are still primarily underweight in the technology sector, their exposure to the communication sector climbed by 0.6%.
“The major tech names remain well-represented among the 25 largest holdings, ranked by market value in the table below, due to their significant index weightings,” Pictet stated.
Microsoft Corp. (MSFT), Alphabet Inc. (GOOGL) (GOOG), Amazon.com Inc. (AMZN), Nvidia Corp. (NVDA), Apple (AAPL), and Meta Platforms Inc. (META) are among the IT companies mentioned. Most notably, Tesla (TSLA) reappeared at No. 13 after missing the top 25 for many consecutive quarters, as hedge funds boosted their total holdings by 27%, according to Pictet.
Beleaguered aircraft manufacturer Boeing Co. (BA), up 320%, and insurance giant Arthur J. Gallagher & Co. (AJG), up 717%, witnessed the largest rise in holdings throughout the hedge fund industry as a number of hedge funds made fresh investments in their equities.
Apple is among the most “unpopular” equities, as determined by the number of hedge funds who sold them outright. In the fourth quarter, Berkshire Hathaway (BRK.B) (BRK.A), owned by Warren Buffett, increased its stake in the iPhone manufacturer by almost $5 billion. However, three hedge fund managers completely sold their Apple holdings, totaling $1.5 billion, according to Pictet.
In order to raise $1.2 billion, four hedge funds sold off their shares in GE Vernova Inc. (GEV).
Pictet also examined the most profitable hedge fund wagers throughout that time frame. “Cryptocurrency strategies, which had struggled in the third quarter (worst performer), emerged as the standout performers in the fourth, boasting a remarkable 33% return,” Pictet stated. The achievement mirrors the spike in Bitcoin to all-time highs after President Trump was elected.
Long equity was the weakest performer, declining 1.7%, while commodity hedge strategies performed well, rising over 6%.
