small investors beat them to the punch thanks to technology

The great gurus of Wall Street are also wrong. In the first quarter of the year, managers as well-known and followed as Warren Buffett or Bill Ackman decided to undo part of their investment in technology companies and enter companies in other sectors. On the contrary, small savers kept their bets and obtained better results.

Exactly, and taking into account the analysis carried out by the eToro platform, the main retail purchases of the first quarter, such as Super Micro and Eli Lilly, have risen 50% so far this year. On the contrary, the latest additions to the portfolios of the great managers -also known as ‘whales’ in stock market slang- They have given up 4%.

The broker bases its study on the data of its users and on the publication of the 13F of the first quarter of the year before the United States Securities and Exchange Commission (SEC). This is a document that institutional investors are required to publish and that contains relevant information about the composition of their portfolios.

Buffett sells Apple

The figures presented by eToro refer to the average performance of securities purchased by Wall Street gurus. But not all of his bets have behaved the same. For example, Buffett’s main purchase in the first quarter of the year has been the Swiss insurer Chubb, whose market value has increased around 21.5% since January 1.

The Oracle of Omaha also expanded its position in Occidental Petroleum and Liberty Sirius XM. On the contrary, the greatest sales were those of Apple, Paramount Global and HP.

Warren Buffett eating ice cream.

Reuters

This was the second consecutive quarter in which Berkshire Hathaway – the holding company from Buffett- has dumped shares of the iPhone maker. Between September and December 2023, it sold 10 million shares. Between January and March, it liquidated other 116.19 million titles.

Nonetheless, Apple remains Buffett’s first position. It represents 40.8% of its portfolio. Below are Bank of America (10.01%), American Express (7.38%), Coca Cola (7.38%) and Chevron (5.41%). The evolution of these companies in 2024 goes from an increase of 29.3% to a decrease of 1.4%.

Small cap

Stanley Druckenmiller – manager of George Soros’ Quantum Fund during his famous multi-million dollar bet against the pound sterling in 1992 – has bet on US small cap companies who have been left behind on the trading floor.

Thus, the main investment of Duquesne Family Office -the vehicle with which he manages the family fortune- in the first quarter were purchase options on the BlackRock ETF that replicates the behavior of the Russell 2000the reference index of small and mid cap on Wall Street.

[Un gurú de Wall Street predice que la inflación tardará una década en volver al 3%]

Also noteworthy are the acquisitions of securities Coherent, Natera and Discover Financial Woodward. At the same time, he sold shares of Nvidia, Eli Lilly, Seagate Technology and UBS.

As a result of these movements, the Duquesne Family Office’s main investment is options call about him iShares Russell 2000 ETF. Its weight in the portfolio is 15.12%. Below are located Microsoft (10.65%), Coupang (9.1%), Tech Resources (4.74%) and Vistra Energy (4.16%).

Technology, but Chinese

Other of those great Wall Street investors is David Tepper, who shares his role as Appaloosa manager with being the owner of the Carolina Panthers football team.

Regarding its first facet, during the first quarter of the year increased his fund’s exposure to Chinese technology.

Bill Ackman, founder of Pershing Square.

Harvard Law Today.

Acquired shares of Alibaba, Adobe, Oracle and PDD, in addition to investing in the iShares China Large. These purchases contrast with the sales of shares of Uber, Meta, Microsoft and Intel, as well as the ARK Innovatios ETF.

Striking is the case of Bill Ackman. The Pershing manager, who is known for his role as an activist investor – for example, he confronted Carl Icahn and Daniel Loeb, other top investors, for considering that Herbalife is based on a pyramid scheme – He made almost no changes to his portfolio.

[Ray Dalio cede el control de Bridgewater tras 47 años al frente del ‘hedge fund’ más grande del mundo]

He simply completely unwound his position in Lowes and reduced his bet on Chipotle. Despite this, the Tex-Mex restaurant franchise continues to be his main investment.

It represents 19.84% of the portfolio made up of only five other companies: Restaurant Brands (17.24%), hilton (16.08%), Alphabet (13.1% class C and 6.03% class A shares), Howard Hughes (12.56%) and Canadian Pacific Railway (12.21%).

13F

The large Wall Street managers had until May 15 to present to the SEC the changes that they made to their portfolios during the first three months of 2024. The deadline to make this information public is 45 days after the end of each quarter.

Thus, The investments and disinvestments made between April and June will be known, at the latest, on August 14. Until then, small investors will have to wait to learn – and, in many cases, subsequently replicate – the strategies of their favorite gurus.

[Cathie Wood, la gurú tecnológica de Wall Street, vaticina que el bitcoin valga un millón de dólares en 2030]

Although 13Fs can be used to understand the portfolios of the best-known whales in the world, and as Ben Laidler, global markets strategist at eToro, points out, “it is important to understand Its limits”.

Thus, it should be noted that only the long positions of the funds are made public, but not short positions. And only investments in stocks. Bets on other assets such as bonds, commodities, currencies or cryptocurrencies remain strictly secret.

Furthermore, Laidler highlights, “they work better for managers with low portfolio turnover, given The delay in the presentation of reports.

 
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