Tiger Global has slashed its positions in four of the five Magnificent Seven tech stocks that account for almost half of its portfolio, while upping its stake in Amazon.com and piling into semiconductor companies, regulatory filings for the final three months of 2023 show.
The New York hedge fund cut its stakes in Magnificent Seven tech firms Alphabet
GOOG,
Meta
META,
Microsoft
MSFT,
and Nvidia
NVDA,
while upping its position in just one of the top-performing technology companies, Amazon.com
AMZN,
the money manager’s 13-F filings shows.
The tech-focused investment fund, which was started by American billionaire Chase Coleman III in 2001, also piled into the global microchip sector, by upping its holdings in two of the world’s top semiconductor firms and buying its first stake in California semiconductor maker Broadcom
AVGO,
Tiger Global’s push to boost its position in the global microchip industry saw it increase its position in Taiwan Semiconductor Manufacturing Co
2330,
by 47.69% and up its holdings in U.S. microchip maker Lam Research
LRCX,
by 8.9%.
The money manager also bought its first stake in U.S. medical technology Dexcom
DXCM,
which makes glucose monitors for diabetes patients, as it reduced its position in Indianapolis headquartered pharmaceutical company Eli Lilly
LLY,
Tiger Global’s decision to lower its position in Eli Lilly follows its push to first buy stocks in the U.S. company and its major rival Novo Nordisk
NOVO.B,
in the second quarter of 2023, in the midst of widespread enthusiasm surrounding the potential held by GLP-1 weight loss drugs.
In the final quarter of 2023, Tiger Global’s increased its positions most sharply in San Francisco food delivery company DoorDash
DASH,
up 79.13%, and in Atlanta headquartered payments processor Fleetcor Technologies
FLT,
up 66.19%.
The sharpest reductions in Tiger Global’s holdings were in Chinese e-commerce company Pinduoduo
PDD,
down 54.3%, and Uber Technologies
UBER,
down 40.64%. The fund also cut its stake in Beijing headquartered e-commerce giant JD.com
JD,
by 10.73%.
Tiger Global’s push to reduce its positions in the Magnificent Seven comes as top hedge funds have piled into the top-performing tech companies throughout 2023 in seeking to cash in on excitement over the potential of artificial intelligence.
Together, Tiger Global’s holdings in the Magnificent Seven account for 46% of the fund’s entire portfolio, with investments in its top two stocks – Meta and Microsoft – accounting for a third of the money manager’s holdings.
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