Hedge funds shift bets to double down on Big Tech amid AI boom

About this update from America Movil Sab De Cv Class B

By Anirban Sen and Carolina MandlWall Street's largest hedge funds, Bridgewater Associates, Tiger Global Management and Discovery Capital, increased their exposure to Big Tech in the second quarter amid a generational boom in the growth of artificial intelligence. During the June quarter, hedge funds cut their exposure to laggards in industries like aerospace and defense, and consumer and retail, as part of a broader move back to momentum investing. It marks a big shift from earlier this year when bets on Big Tech had soured for top money managers due to tariff-fueled volatility in financial markets, with investor concerns around rising inflation and fears of a bubble in AI triggering a sell-off in "Magnificent Seven" stocks. Since then, tech stocks have staged a big comeback. The S&P 500 SP:SPX is up 10% so far this year, buoyed largely by the largest tech companies, which account for nearly a third of the combined market cap of companies on the index.Outside technology, some hedge funds, such as Lone Pine and Discovery, also bet on UnitedHealth Group NYSE:UNH. Berkshire Hathaway NYSE:BRK.A and Michael Burry's Scion Asset Management also unveiled bets on the insurer, while Soros Fund Management boosted an existing position.Shares in UnitedHealth are down 46% this year, as the company faces rising costs, a U.S. Department of Justice probe, a cyberattack and the shooting of former top executive Brian Thompson last December. The fund's positions were revealed in quarterly securities filings known as 13Fs. While backward-looking, these filings typically reveal what funds owned on the last day of the quarter and are one of the few ways hedge funds and other institutional investors have to declare their positions. Below are the details of the changes in the holdings of the top hedge funds:BRIDGEWATER ASSOCIATESBridgewater Associates added more shares in Nvidia NASDAQ:NVDA, Alphabet NASDAQ:GOOG and Microsoft NASDAQ:MSFT in the second quarter.The macro hedge fund founded by Ray Dalio more than doubled its bets in Nvidia. It ended June with 7.23 million shares in the chipmaker, or 154.5% more than it had at the end of March. Nvidia was Bridgewater's biggest bet in a single stock, totaling $1.14 billion.Its holdings in Alphabet and Microsoft went up by 84.1% and 111.9%, respectively, amounting to $987 million and $853 million.Other AI-related stocks added were Bro...

View stock analysis, news, and events for America Movil Sab De Cv Class B