This year’s tremendous market volatility has not scared hedge funds that continue to trade through long and short bets.
Many hedge funds have increased their trading volumes to take advantage of the market volatility.
It raises the question of which stocks the top hedge funds are buying and which they are selling.
Every quarter, we get a glimpse into the moves made by top investors like Bill Ackman, Michael Burry, and Stanley Druckenmiller.
These investors, who manage large pools of money, must submit 13F filings with the U.S. Securities and Exchange Commission (SEC).
13F filings disclose investors’ U.S. equity holdings and give everyone access to which shares the top funds hold.
Daily Investor analysed the 13F forms from prominent hedge funds to see which are the most popular shares and which ones have lost favour.
Below are prominent buys and sells in terms of volumes for the period between July and September.
Most popular shares
- Microsoft (13 buyers) – The biggest buyer was the Bill & Melinda Gates Foundation Trust, which bought 38.3 million shares to bring the total owned to 39.3 million, or 27% of its portfolio.
- Charter Communications (5 buyers) – An American telecommunications and mass media company which offers broadband connectivity and cable services under the Spectrum brand. It is one of the new buys by Michael Burry and now comprises 7% of his portfolio.
- Intuit (4 buyers) – A business software company that specialises in financial software like Quickbooks.
- GEO Group (3 buyers) – The operator of private prisons and mental health facilities. This was the only share in Michael Burry’s portfolio in the second quarter, and he quadrupled the size of his position this quarter.
- Qurate Retail Group (3 buyers) – An American media conglomerate that specialises in video-driven shopping across TV, digital streaming, social media, and e-commerce sites. It is one of the new buys by Michael Burry and now comprises 24% of his portfolio.
- Canadian National Railway (3 buyers) – A Canadian freight railway operator based in Montreal. It owns an expansive rail network across Canada and the Eastern United States. It is a favourite of the Bill & Melinda Gates Foundation Trust, and they increased their holding 5-fold this quarter.
- Alphabet Class C (12 sellers) – The Google parent traded heavily this quarter. It also features on many hedge fund managers’ buy-list, but in smaller volumes.
- Amazon (8 sellers) – Hedge Funds had a mixed outlook about the prospects of the e-commerce giant. Stephen Mandel’s Lone Pine Capital and Seth Klarman’s Baupost Group sold a significant portion of their holdings. It also featured on many hedge fund managers’ buy-list but in smaller volumes.
- Sysco Corporation (4 sellers) – An American multinational involved in marketing and distributing food products, small wares, kitchen equipment, and tabletop items to restaurants, healthcare and educational facilities, hospitality businesses, and wholesale to other food service companies. David Tepper’s Apaloosa and Yacktman Asset Management cut their company holdings in half.