Trim Alphabet, buy Microsoft: How major hedge funds invested in tech during the first quarter

Published Sat, May 18 20249:02 AM EDT

Hedge funds took a diversified approach to technology investing in the first quarter as the sector built on its 2024 rally. Technology stocks kicked off another strong year as artificial intelligence tailwinds and the rotation toward growth continued to run its course. The excitement lifted the tech-heavy Nasdaq Composite more than 9% in the first quarter. AI darling Nvidia rallied more than 82%, while Meta Platforms jumped 37% during that time. While technology was far from the most sought after sector among hedge funds during the period, several major firms used the ongoing uptrend to lock in profits, while others used the quarter to up the ante on their bets. .IXIC YTD mountain Nasdaq this year Both Scion Asset Management's Michael Burry and Viking Global's Ole Andreas Halvorsen zeroed out positions in AI leader Alphabet , while David Tepper's Appaloosa trimmed his position in the Magnificent 7 stock. Some investors, however, used the stock's underperformance relative to peers and the Nasdaq to beef up positions. Chase Coleman's Tiger Global, Seth Klarman's Baupost, Dan Sundheim's D1 Capital and Phillippe Laffont's Coatue hiked stakes in the search giant , while Dan Loeb's Third Point opened a position worth roughly $453 million. Microsoft also garnered mixed moves from Wall Street's biggest investors. Halvorsen built a new $672-million position as Tepper, Sundheim and Laffont reduced their holdings. Both Appaloosa and Coatue trimmed stakes in Nvidia during the period, with the latter shrinking his stake by 68% to $1.25 billion. The firms also eased positions in Advanced Micro Devices by 19% and 46%, respectively. NVDA YTD mountain Shares this year Other famed investors also took profits in Nvidia following its run, including Altimeter Capital's Brad Gerstner. Stanley Druckenmiller told CNBC last month that he cut his Nvidia stake in late March and called AI a "little overhyped" in the short run. Apple caught renewed attention from Viking Global and cuts from Coatue and Warren Buffett's Berkshire Hathaway. Coatue, Third Point, Viking Global and Tiger Global upped their Amazon stakes, while Appaloosa and D1 Capital trimmed their holdings. Coatue also minimized its Meta Platforms position, while Tepper slashed his stake by 39% to $589 million.