As Nvidia's stock continued to surge, Bridgewater Associates, the world's largest hedge fund, made significant moves to capitalize on the chip maker's momentum.
Increased Stake in Nvidia Stock
During the fourth quarter, Bridgewater quintupled its stake in Nvidia stock, adding 220,381 shares to end the period with a total of 268,489 shares valued at $133 million.
Diversified Portfolio Adjustments
In addition to its Nvidia investment, Bridgewater more than doubled its position in General Electric, acquiring 211,650 shares to bring its total to 384,161. The hedge fund also opted to scoop up AT&T stock while reducing its holdings in Palantir Technologies.
Performance Highlights
Nvidia's exceptional performance in 2023 outpaced the S&P 500 index, delivering a remarkable 59% increase compared to the index's 6.7% growth. The chip maker's blowout fourth-quarter earnings further fueled its rise and bolstered investor confidence in the ongoing growth of artificial intelligence.
GE's Transformation and Bridgewater's Involvement
Under the leadership of CEO Larry Culp, GE underwent significant transformations, including the spin-off of GE Healthcare Technologies and upcoming split into two separate companies focused on aerospace and power generation. Bridgewater's increased investment in GE reflects confidence in the conglomerate's strategic direction and positive market performance.
Overall, Bridgewater Associates' strategic maneuvers in 2023 positioned the hedge fund to benefit from the evolving landscape of key industries and emerging technologies.
Bridgewater Boosts AT&T Stake, Sells Palantir Shares
Bridgewater, one of the largest hedge funds, significantly increased its investment in AT&T during the fourth quarter, acquiring an additional 1.1 million shares. This move brought the fund's total stake in the telecom giant to 2.9 million shares.
AT&T vs. Nokia: A Deal with Ericsson
In December, AT&T made a strategic agreement with Ericsson, committing to purchase up to $14 billion worth of hardware and services from the Swedish company. This decision came after Ericsson promised to open its software to rival systems, dealing a blow to AT&T's previous supplier, Finnish company Nokia.
AT&T Faces Challenges
While the news of the deal with Ericsson was positive, AT&T experienced setbacks. The company's stock dipped following a disappointing fourth-quarter report. Additionally, both AT&T and its subsidiary Cricket encountered system outages that impacted customers' ability to make phone calls.
Palantir: A Rising Star
Meanwhile, Palantir, a data-analytics and AI-applications firm, witnessed significant growth. The company's stock surged by 167% in 2023 and continued to rise by 34% in 2024. Palantir's success can be attributed to the Nvidia rally and the increasing excitement surrounding AI technologies. Despite slowing deals from the U.S. government, CEO Alex Karp expressed confidence in Palantir's new AI platform, emphasizing its potential to drive substantial value for the business.
Bridgewater's Investment Strategy
Bridgewater made strategic moves related to its investment portfolio during the fourth quarter. The fund sold 183,218 shares of Palantir, reducing its holdings to 165,947 shares.
About Inside Scoop
Inside Scoop provides insights into stock transactions made by corporate executives, board members, significant shareholders, politicians, and other prominent figures. These individuals, known as insiders, are required to disclose their stock trades to regulatory bodies like the Securities and Exchange Commission.
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