Latest transactions by star managers

Every quarter, the star managers of the US stock market publish their latest portfolio movements. This article is based on the 13Fs published each quarter on the SEC (Securities and Exchange Commission) website. These quarterly reports list the assets under management of investment managers or listed holding companies with control over more than $100 million in assets and who hold so-called long US positions. Form 13F covers Registered Investment Advisers (RIAs), banks, insurance companies, hedge funds, trust companies, pension funds and mutual funds. This report is published no later than 45 days after the end of the quarter concerned. This form only includes US or foreign positions listed in the US. Here is an analysis of the latest moves in the third quarter of 2024 by legendary investors such as Warren Buffett, Terry Smith, Daniel Loeb, Chuck Akre, David Tepper, Howard Marks, Pat Dorsey, Seth Klarman, Bill Ackman, Mohnish Pabrai and François Rochon.

Let's start with Warren Buffett (Berkshire Hathaway), who made a big splash by reducing his flagship position in Apple by 25% for the fourth time in a row (the Apple stock now accounts for only 26% of his portfolio). He also reduced his positions in Bank of America, SiriusXM Holdings, Capital One Financial, Nu Holdings and Charter Communications. This move reflects his caution and distrust of current market valuations, which he considers too high for his liking. He sold Ulta Beauty completely a few months after its initial purchase in 2024. Thanks to massive share sales, to the tune of $133 billion this year, Berkshire has reaped substantial profits and maintains a balance sheet of solid gold. Two new stocks make their appearance: Domino's Pizza and Pool Corporation. Warren Buffett, like a modern-day Scrooge, accumulates mountains of cash in his Berkshire Hathaway holding company, recently reaching an impressive $325 billion.

The adventures of Warren Buffett and his huge treasury

Terry Smith (Fundsmith) didn't make many moves in his top 10, apart from a 17% reduction in Philip Morris after the stock's good performance. Microsoft is still his biggest line, and it's working out rather well for him.

Pat Dorsey (Dorsey Asset Management) lightened his portfolio (notably Smartsheet and Semrush Holdings) with the exception of Sprout Social, which he strengthened by 14%. The most noteworthy move was the opening of a new position in AppLovin for almost 10% of his portfolio.

Daniel Loeb (Third Point) has been very active over the past quarter, with a number of weightings (PG&E Group, Amazon, Danaher, Vistra, Microsoft, Meta Platforms, Apple, etc.). Major consolidations included Intercontinental Exchange (+108%), Live Nation (+71%) and CRH (+215%). Numerous new lines were also opened: Brookfield Corporation, Flutter Entertainment, LPL Financial Holdings, Carpenter Technology, Tesla, Ansys, CVS Health.

Chuck Akre (Akre Capital Management) seems to have fallen in love with Airbnb, which he boosted by +183% to 2.8% of his US portfolio. Like several of his colleagues here, he also reinforced Brookfield Corporation. He trimmed 20% and 16% from two of his historical positions: Moody's and KKR.

David Tepper (Appaloosa Management) remains steadfastly confident in his Chinese positions, having significantly reinforced Pinduoduo (PDD Holdings) and JD.com. He doubled his position in Lyft and bought Vistra Corp, NRG Energy and casino operators Las Vegas Sands and Wynn Resorts. However, he is more cautious on US technology stocks, which he has significantly reduced.

Howard Marks (Oaktree Capital Management) continues to fascinate me with his majority position in Torm, which represents ¼ of his portfolio (he has cut 8%). He initiated new lines on Talen Energy and California Resources.

Seth Klarman (Baupost Group), the spiritual descendant of Warren Buffett, initiated several new lines, notably Dollar General at 5.6% of his US portfolio. He reinforced Willis Towers Watson (+8%) and Alphabet (+37%) to reach 7% of his US selection, as well as Wesco International and Eagle Materials. On the other hand, he lightened CRH and Viasat. His top position is still Liberty Global.

Bill Ackman (Pershing Square Capital Management) greatly strengthened two majority positions, namely Brookfield Corporation (+377%) and Nike (+435%), which respectively account for 13.5% and 11.2% of his US portfolio. He reduced Hilton Worldwide Holdings (-17%) and initiated a small position in Seaport Entertainment Group.

Mohnish Pabrai (Pabrai Investments), the highly concentrated Indian manager, added a fifth line to his US portfolio with Danaos Corporation. He significantly reduced (-92%) his position in Arch Resources, which now accounts for just 1.7% of his selection. On the contrary, he quadrupled his position in CONSOL Energy to 32.6% of his portfolio, and Warrior Met Coal (+48%) to 18%.

François Rochon (Giverny Capital), an investor in quality companies, favored the status quo by slightly strengthening his top 30 positions, with the exception of Alphabet and Floor & Decor Holdings, which he trimmed. He initiated small positions in Intercontinental Exchange, Capital One Financial, Yum China Holdings, Liberty Media and Costco.