Source: Wall Street News
According to the analysis, there is a time lag in the 13F file. Judging from Druckenmiller's statement last week, he may not increase his holdings of Nvidia in the second quarter; on the contrary, it is entirely possible that he will further reduce his holdings.
Former Soros deputy and billionaire Stanley Druckenmiller said last week that the AI boom may have been overhyped; he cut it a lot$NVIDIA (NVDA.US)$Positions were held, but the scale of holdings reduction was not disclosed. The latest 13F file gives relevant important clues.
According to the 13F documents released this week, Druckenmiller's family office sold more than 441,000 Nvidia shares in the first quarter of this year, reducing its Nvidia holdings to only 176,000 shares. This means that by the end of the first quarter alone, the reduction ratio was over 70%, and the value of the remaining Nvidia holdings was about US$158 million.
According to the analysis, the 13F file has a time lag. It is only up to the end of the first quarter. Judging from Druckenmiller's statement last week, he probably won't increase his Nvidia holdings in the second quarter; on the contrary, it is entirely possible that Nvidia's holdings will be further reduced in the second quarter.
Here are the highlights of Druckenmiller's speech last week:
We did cut our positions at Nvidia and many others in late March; I just needed a break and we had a period of hell of luck. Many of the things we recognize are now accepted by the market.
I'm not Warren Buffett and can't hold stocks for 10 to 20 years. Sometimes I really wish I was Buffett.
A young partner introduced me to Nvidia in the fall of 2022. I can't even spell it, but I bought it anyway.
ChatGPT came out a month later, and even old guys like me could understand what that meant, so I increased my position significantly. The boom in artificial intelligence may be a major trend we've never seen before, and it's likely to be bigger than the internet.
Druckenmiller is one of the most successful macro-hedge fund managers in the world. While working for Soros's Quantum Fund, he achieved very few 30+30 results: the compound return rate reached an astonishing 30% in 30 years. Not only that, there were no losses in this year. At the beginning of the AI boom last year, DruckenMiller also accurately stepped on Nvidia's current rise. Previously, Nvidia was his largest holding position.
Nvidia will release a major financial report next week. Although its stock price has soared by about 90% since this year, Wall Street is still optimistic, and the target price is higher one by one. HSBC analyst Frank Lee believes that investors currently underestimate Nvidia's artificial intelligence business prospects, and the stock still has a lot of room to rise, raising Nvidia's target price to 1,350 US dollars.
In addition to Nvidia, Druckenmiller also drastically reduced its holdings and even cleared stocks such as Lilly, Chevron, and UBS. 13F also showed another important move by Druckenmiller: bullish on US small-cap stocks in the first quarter and invest in iShares Russell 2000 ETF IWM bullish options.
In fact, Druckenmiller isn't the only one; in addition, other well-known fund managers have also reduced their holdings in technology stocks such as the “Seven Sisters”:
The 13F file shows that David Tepper drastically cut his holdings in Amazon, Microsoft, and Meta. David Bonderman's Wildcat Capital Management sold Meta shares, leaving only $23.7 million in positions. Michael Platt's BlueCrest Capital Management sold off Nvidia and Amazon.
Executives within the “Seven Sisters” company also sold:
Financial blogger ZeroEdge commented that we would also like to draw the reader's attention to Druckenmiller's comments last week, which rated Biden Economics as an “F”. This is an ominous sign that his outlook for the US economy is far from optimistic. Smart money doesn't want to get caught up in Federal Reserve Chairman Powell's musical chair game when the music stops.
editor/tolk