Amazon became the most popular hedge fund stock as of the end of the second quarter, leaping over Microsoft, which had held the top spot for more than two years.
The e-commerce and cloud computing juggernaut counted at least 411 hedge funds among its shareholders at the end of June, a net increase of 13 investors from the previous quarter, according to SEI Novus, a technology and investment solutions provider.
Amazon overtook Microsoft after the software company saw a net departure of six hedge fund investors, leaving it with 399 at the close of the second quarter, according to SEI, which has perhaps the most comprehensive database of hedge fund holdings. Microsoft had held the lead position for eight quarters as Amazon sat in second place, an analysis of the database reveals.
Among Amazon’s new investors in the second quarter: Discovery Capital Management, Hound Partners, and Magnetar Capital, according to their second-quarter 13F filings. In contrast, at least one prominent investor liquidated its position in Microsoft in the second quarter: Steve Cohen’s Point72 Asset Management, which sold all of its one million-plus shares, according to its most recent 13F filing.
But it was Apple that enjoyed the largest jump in new investors last quarter. It became the fourth-most widely held stock among hedge funds, with 314 total investors after it gained 66 and lost just 23. However, eight more existing hedge fund investors trimmed their stakes than added to their positions.
Institutional Investor recently reported that Dan Loeb’s Third Point initiated a position in the second quarter, immediately making Apple its seventh-largest U.S.-listed long. Loeb is bullish on Apple’s AI prospects.
Two other stocks — both semiconductor companies — that rank among the 20 most widely held hedge fund stocks also enjoyed a large net increase in new investors.
Chip maker Broadcom tied for the tenth-most-popular stock (with Berkshire Hathaway), with 204 hedge fund investors after attracting 48 new ones and losing just 15. New investors included Renaissance Technologies and Viking Global Investors. Taiwan Semiconductor Manufacturing Corp. was right behind Broadcom, with 203 hedge fund investors, gaining 40 new ones while shedding just 12. One of TSMC’s new investors in the second quarter was Jericho Capital Asset Management.
Facebook parent Meta Platforms was the fifth-most widely held stock, with 306 investors after it lost a net 24. It had been the third-most-popular hedge fund stock at the end of the first quarter.
Altogether, 14 of the 20 most widely held hedge fund stocks saw a net increase in ownership in the second quarter, suggesting an underlying conviction about the most popular issues.
Here are the 20 most widely held stocks among hedge funds as of June 30, 2024, according to SEI Novus:
Amazon 411 hedge fund investors
Microsoft 399
Alphabet “A” 316
Apple 314
Meta Platforms 306
Nvidia 296
Visa 249
Alphabet “C” 244
Mastercard 216
Berkshire Hathaway 204
Broadcom 204
Taiwan Semiconductor Manufacturing 203
JPMorgan Chase 199
UnitedHealth Group 193
Uber Technologies 192
Eli Lilly 187
ExxonMobil 185
Merck 183
Johnson & Johnson 175
Thermo Fisher Scientific 169