We have now received virtually all of the Q2 13F reports from superinvestors managing capital in excess of $100m. These documents reveal transactions by major players in the US market.
Table of contents:
- Superinvestors on the stock exchanges: much more sold than bought
- Buffett like Scrooge McDuck is currently sitting on a huge amount of cash
- Michael Burry and the rising bet on China
- Conclusions
Superinvestors on the stock exchanges: much more sold than bought
Despite robust market gains in Q2 2024, many super investors sold off stocks rather than buying them. The largest sell-offs were in stocks from the financial, consumer goods and technology sectors. In contrast, the largest purchases were focused on companies in the industrials, basic goods and healthcare sectors, which seems to indicate a defensive approach by investors.
Source: Dataroma
The most popular stock was Warren Buffett's Berkshire Hathaway fund, which attracted 9 super investors. In second place was healthcare company United Health Group, which gained 8 investors. Despite the general defensiveness towards the technology sector, the third most popular company was technology giant Microsoft.
Buffett like Scrooge McDuck is currently sitting on a huge amount of cash
The biggest changes have taken place at Berkshire Hathaway. Warren Buffett sold almost half of his largest investment, Apple. This sale led to a record level of cash and short-term bonds of $276.9 billion.
Source: Conotoxia MT5, BerkshireHa, Daily
Buffett focused on selling off shares in Q2, completely divesting Snowflake and Paramount Global and reducing positions in Chevron. It seems that the high level of safety has led to Warren Buffett's shares already breaking through their historic peaks after ‘Black Monday’.
Source: Dataroma
Michael Burry and the rising bet on China
Michael Burry, known for predicting the 2008 financial crisis, has increased his investments in Chinese companies Baidu and Alibaba. At the end of Q2, US-listed Chinese stocks accounted for as much as 45.9 per cent of his total investments. His portfolio underwent significant changes. He sold off all the gold he had purchased a quarter earlier, and disposed of transport, oil and financial companies.
Source: Conotoxia MT5, Baidu, Daily
New investments include Shift4 Payments, a payment solutions company, Molina Healthcare, a provider of healthcare services in the Medicaid and Medicare programmes, and Hudson Pacific Properties, a company that manages commercial real estate, including office buildings and film studios. The value of his equity portfolio halved from the first quarter, which may suggest that Burry, like Buffett, is betting on liquid capital and high interest income.
Source: Dataroma
Conclusions
It seems that super investors currently approach today's market realities with a great deal of detachment. It is difficult to look for, for example, the pursuit of the artificial intelligence companies so popular today in their investment decisions. It is more likely to be interpreted as an increase in concern and asset protection.
Grzegorz Dróżdż, CAI MPW, Market Analyst of Conotoxia Ltd. (Conotoxia investment service)
The above trade publication does not constitute an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No. 596/2014 of April 16, 2014. It has been prepared for informational purposes and should not form the basis for investment decisions. Neither the author of the publication nor Conotoxia Ltd. shall be liable for investment decisions made on the basis of the information contained herein. Copying or reproducing this publication without written permission from Conotoxia Ltd. is prohibited. Past performance is not a reliable indicator of future results.
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