Hedge funds increase exposure to tech, pull back on housing

Recent 13F filings, or quarterly holdings reports filed by institutional investment managers with the Securities and Exchange Commission (SEC) have shed light on hedge funds' exposure. Investment in the tech sector increased the most, while exposure to real estate grew by the least.

Yahoo Finance Anchors Madison Mills and Seana Smith break down the latest developments in the 13F filings for the broader market.

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Nicholas Jacobino

Video transcript

What's the most wonderful time of the year for some hedge funds?

13 F they are there.

They are the quarterly reports that are filed by institutional investment managers with at least $100 million in assets under management giving the broader market a signal of what institutional money is into.

To.

No surprise, tech is getting lots of love.

The value of investments in technology increased the most while real estate rose by the least for any industry that's to the regulatory filings.

The other big reveal was Warren Buffett's mystery stock and to no surprise, it was a bet on insurance.

They revealed a steak and chub that remained had been a mystery here for so many people on the street trying to figure out what exactly that holding was.

It wasn't revealed at the annual shareholder meeting that was at two weeks ago, he wasn't asked about it.

So here we're getting some insight there.

But to focus on this focus that we have seen from these hedge fund when it comes to tech, boosting their exposure to some of these A I darling, specifically Invidia really shows just where that allocation has been where it's going and why we're seeing so many of these companies still mention A I in these earnest calls because they're trying to get a piece of that excitement that we clearly are seeing on the street.

They absolutely are.

And I wanted to just for fun, take a look at any that were actually selling NVIDIA.

And this is not super surprising, Dr and Miller, his investment firm cashing out their gains on some magnificent seven stocks.

They sold 400,000 shares of NVIDIA.

They also did this last year too.

So some profit taking there.

This isn't like a bear signal for video.

I just think it's interesting David T investing for doing the same.

We also have the likes of Michael Burry selling some names, selling out of Amazon and alphabet, but looking into some of those other big tech plays.

So we saw Amazon actually down on the day yesterday despite the market rally that we saw, I think that might have been related to some of the moves following that.

And then lastly, you've got Bill Ackman who continues to just be obsessed with Chipotle.

So that's always fun.

It was also interesting.

Did you mention Microsoft there?

No Microsoft was cut or reduced by 252 investors.

The biggest such number that we have seen Amazon on the other side was increased or initiated by 200 32 investors, which is the biggest tally there.

So we're seeing some divergence within the mag seven names which have been market darlings where we are still seeing some out performance there losing a handful of them.

So, again, interesting to keep an eye on there where this large institutional money is making those bets and exactly what that means for the broader market here.

I wonder if they're over open A I and some of the drama there, we'll see.

Yeah, I think it's priced in.

Right.

Right.

Very true.