AGL 39.94 Decreased By ▼ -0.06 (-0.15%)
AIRLINK 129.04 Decreased By ▼ -0.02 (-0.02%)
BOP 6.85 Increased By ▲ 0.10 (1.48%)
CNERGY 4.68 Increased By ▲ 0.19 (4.23%)
DCL 8.60 Increased By ▲ 0.05 (0.58%)
DFML 41.00 Increased By ▲ 0.18 (0.44%)
DGKC 82.85 Increased By ▲ 1.89 (2.33%)
FCCL 33.10 Increased By ▲ 0.33 (1.01%)
FFBL 73.50 Decreased By ▼ -0.93 (-1.25%)
FFL 11.92 Increased By ▲ 0.18 (1.53%)
HUBC 109.40 Decreased By ▼ -0.18 (-0.16%)
HUMNL 14.26 Increased By ▲ 0.51 (3.71%)
KEL 5.25 Decreased By ▼ -0.06 (-1.13%)
KOSM 7.62 Decreased By ▼ -0.10 (-1.3%)
MLCF 39.20 Increased By ▲ 0.60 (1.55%)
NBP 64.44 Increased By ▲ 0.93 (1.46%)
OGDC 193.25 Decreased By ▼ -1.44 (-0.74%)
PAEL 25.69 Decreased By ▼ -0.02 (-0.08%)
PIBTL 7.35 Decreased By ▼ -0.04 (-0.54%)
PPL 153.89 Decreased By ▼ -1.56 (-1%)
PRL 25.45 Decreased By ▼ -0.34 (-1.32%)
PTC 17.40 Decreased By ▼ -0.10 (-0.57%)
SEARL 78.39 Decreased By ▼ -0.26 (-0.33%)
TELE 7.72 Decreased By ▼ -0.14 (-1.78%)
TOMCL 33.41 Decreased By ▼ -0.32 (-0.95%)
TPLP 8.39 Decreased By ▼ -0.01 (-0.12%)
TREET 16.40 Increased By ▲ 0.13 (0.8%)
TRG 56.60 Decreased By ▼ -1.62 (-2.78%)
UNITY 27.50 Increased By ▲ 0.01 (0.04%)
WTL 1.38 Decreased By ▼ -0.01 (-0.72%)
BR100 10,539 Increased By 94 (0.9%)
BR30 31,128 Decreased By -61.3 (-0.2%)
KSE100 98,536 Increased By 737.3 (0.75%)
KSE30 30,742 Increased By 261.8 (0.86%)

Prominent hedge fund managers sold out of Chinese technology stocks and dumped Silicon Valley giants like Apple Inc and Facebook Inc while global stock markets cratered during the fourth quarter, according to securities filings released on Thursday.
Activist hedge fund Jana Partners sold out of its position in Chinese e-commerce giant Alibaba Group Holding Ltd and reduced its stake in Apple by approximately 175,000 shares, slicing its position in the company by 63 percent. Third Point LLC sold all of its shares of Alibaba and in streaming giant Netflix Inc, while reducing its stake in payments company Visa Inc by approximately 200,000 shares, or about 11 percent of its prior position.
Omega Advisors, run by billionaire Leon Cooperman, sold all of its approximately 88,000 shares of Facebook and reduced its stake in Google-parent Alphabet Inc by approximately a third by selling approximately 47,600 shares. The moves came during a volatile fourth quarter in which fears of slowing economic growth pushed the US benchmark index S&P 500 to the brink of a bear market while stock indexes in China and Germany finished the year down 20 percent or more.
Since then, shares have sharply rebounded on a broad global rally powered by hopes of a new trade deal between the US and China and the Federal Reserve's decision to slow its pace of interest rate hikes. Alibaba is up nearly 23 percent since the start of January, while Netflix is up nearly 34 percent over the same time. Those gains helped power the average hedge fund in January by the largest monthly gain since September 2010, according to Hedge Fund Research.
"While investor optimism dominated in January, significant macroeconomic uncertainty still exists, increasing the likelihood that recent trends toward elevated realized volatility will remain and continue to drive industry performance," said Kenneth J. Heinz, president of HFR.
Quarterly disclosures of hedge fund managers' stock holdings in 13F filings with the US Securities and Exchange Commission are one of the few public ways of tracking what hedge fund managers are selling and buying. But relying on the filings to develop an investment strategy comes with some risk because the disclosures are made 45 days after the end of each quarter and may not reflect current positions.
Along with the sell-off among technology stocks, hedge fund managers added new positions in companies ranging from Mastercard Inc to Salesforce.Com Inc. Jana Partners added a new position in Salesforce.com by buying approximately 115,000 shares, while Third Point increased its stake in the company by 135 percent by adding another 675,000 shares. Shares of the company are up 16.6 percent since the start of the year.
Tiger Global added a new position in information technology infrastructure management company Solarwinds Corp. Shares of the $5.7 billion market cap company are up 35 percent for the year. Omega Advisors, meanwhile, doubled its stake in CVS Health Corp by buying approximately 401,000 shares. Shares of the company are up 3.7 percent for the year to date.

Copyright Reuters, 2019

Comments

Comments are closed.