Billionaire investing titans Stanley Druckenmiller and David Tepper loaded up on stocks benefiting from the boom during the first quarter.
Q1 2023 hedge fund letters, conferences and more
Druckenmiller’s Duquesne Family Office increased its stake in Nvidia Corp., a chipmaker that’s been a key beneficiary of the increased interest in AI, according to the firm’s quarterly 13F filing. Nvidia’s stock is up 98% so far this year, making it one of the top performers in the S&P 500 Index.
“AI is very, very real and could be every bit as impactful as the internet,” Druckenmiller said at the 2023 Sohn Investment Conference last week.
Duquesne Family Office added more than 208,000 shares of Nvidia during the first quarter, increasing the market value of the firm’s holding in the chipmaker to about $220 million.
Tepper’s Appaloosa Management added a new position in Nvidia, buying 150,000 shares with a market value of about $41.7 million. The firm also bought 500,000 new shares of Cathie Wood’s ARK Innovation ETF, which invests in companies that create disruptive technologies. While the fund has lost three-quarters of its value since its high in early 2021, it has gained 23% this year.
Duquesne Family Office added a large new position in Microsoft Corp., which now makes up 9% of the firm’s roughly $2.3 billion US equities portfolio. Microsoft has a $10 billion investment in OpenAI, whose ChatGPT tool has lit up the internet.
Druckenmiller’s firm also added a new position in Iqvia Holdings Inc., a healthcare technology company that says on its website it has “transformative AI capabilities” to help with its research and commercial efforts. Duquesne bought about 474,500 shares of the company during the first quarter with a market value of $94 million.
The two investing legends built their fortunes as hedge fund managers. Druckenmiller has a net worth of $9.9 billion and Tepper has a net worth of $16.2 billion, according to the Bloomberg Billionaires Index.
Money managers overseeing more than $100 million in US equities have to file a 13F form within 45 days of the end of each quarter to list their holdings in stocks that trade on US exchanges. It’s one of the few places to gain insight into how hedge funds and some large family offices invest.
Read the full article here by Amanda Albright, Advisor Perspectives.
