Hedge Funds Take Diversified Approach to Technology Investing in First Quarter

Hedge funds took a strategic approach to technology investing in the first quarter of the year, capitalizing on the sector’s continued momentum following a strong 2024 rally. The Nasdaq Composite surged more than 9% in the first quarter, driven by artificial intelligence advancements and a shift towards growth stocks.

Leading the charge was AI powerhouse Nvidia, which saw an impressive 82% rally in the first quarter. Meta Platforms also experienced a significant jump of 37% during this time, reflecting the overall bullish sentiment towards technology stocks.

While technology may not have been the top choice for hedge funds during the period, several major firms made strategic moves to capitalize on the sector’s growth. Some investors, such as Scion Asset Management’s Michael Burry and Viking Global’s Ole Andreas Halvorsen, exited positions in Alphabet, while others like Chase Coleman’s Tiger Global and Seth Klarman’s Baupost increased their stakes in the tech giant.

Microsoft also saw mixed moves from investors, with some like Halvorsen building new positions while others like Tepper and Laffont reducing their holdings. Nvidia, on the other hand, saw some profit-taking from investors like Coatue and Altimeter Capital’s Brad Gerstner following its impressive run.

Apple and Amazon also garnered attention from hedge funds, with some firms increasing their stakes while others trimmed their holdings. Meta Platforms, however, saw reductions in positions from Coatue and Tepper, indicating a shift in sentiment towards the social media giant.

Overall, hedge funds took a diversified approach to technology investing in the first quarter, making strategic moves to capitalize on the sector’s growth while also locking in profits where necessary. With the tech sector showing no signs of slowing down, investors will continue to monitor these developments closely in the coming months.