Carolina Panthers owner David Tepper listens to a question during a 2022 press conference.
Alex Slitz | Tribune News Service | Getty Images
A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide for wealthy investors and consumers. Register to receive future editions, straight to your inbox.
Private investment firms of the ultra-rich bought slumping stocks last quarter as enthusiasm for AI propelled global markets to record highs, according to third-quarter securities filings analyzed by CNBC.
Hedge fund billionaire David Tepper’s family office, Appaloosa, has sold its entire stake in Oracle during the quarter ended September 30. During that time, shares of the software giant rose nearly 29%. Last quarter, Appaloosa locked in gains from “Magnificent Seven” stocks by closing its stake in Intel and cut it Meta assets of 8%.
Meanwhile, Appaloosa doubled down on tariff-hit consumer stocks, increasing its stake in Whirlwind by 2,000%. Appaloosa’s 5.5 million shares in the appliance company ranked third in holdings at the end of the quarter, worth $432 million. During the second half of the year, Whirlpool shares have fallen nearly 31% so far. Tepper’s company also increased its stake in Goodyear tires and rubberdown 13% this year.
Carl Icahn’s eponymous family office is also betting on a recovery in consumer values, by increasing its holdings in International flavors and fragrances by 27%, to $292 million. IFF, down 23% on the year, produces ingredients for a wide range of consumer products, from crisps to deodorants. Icahn, a longtime activist investor, first built his stake in IFF in 2022, and his son Brett joined the company’s board of directors in late October pursuant to a prior agreement between IFF and Icahn Capital.
Omega Advisors, Leon Cooperman’s hedge fund-turned-family office, has been looking into health insurance stocks, increasing its Cigna 53% stake in 325,000 shares. The Cooperman Company has also expanded its position in Élevance Santé by 21%, making it Omega Advisor’s eighth-largest stock with an end-of-quarter value of $110.2 million. Shares of Cigna and Elevance are both down about 18% in the second half, pressured by rising medical costs and anticipated government cuts in health care funding.
These bold bets aside, family offices are still buying into the rally in some Mag 7 stocks. Soros Fund Management has increased its stake in Apple And Amazon by 2,000% and 481%, respectively. Amazon shares are the company’s largest holding, with a quarter-end value of $489 million.
Stanley Druckenmiller’s Duquesne Family Office initiated positions in Amazon and Meta of $96 million and $56 million, respectively, after liquidating them during the previous quarter.
Even Appaloosa, after reducing its positions in several tech giants, increased its position. Nvidia assets of 9%.