The 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's an analysis of the latest moves in the second 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 for the third time in a row. This time, however, he's not pulling any punches, cutting his position by almost 50%. Rest assured, Apple still accounts for 30% of his portfolio of US listed shares. It has also reduced the size of its positions in Chevron, Capital One, T-Mobile, Louisiana-Pacific, Liberty Media Corp and Floor & Decor. The Omaha oracle also opened two small new lines on Heico Corporation (incidentally, a current position in the Momentum Picks Q3 2024 selection) and Ulta Beauty, and slightly strengthened Occidental Petroleum, Chubb and Liberty SiriusXM. Its main US-listed positions remain Apple, Bank of America, American Express, The Coca-Cola Company and Chevron.

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Terry Smith (Fundsmith) reduced almost all his holdings, from Microsoft (his largest position) to McDonald's (his smallest US position) to Visa, except for three which he strengthened. These were Fortinet (+25%, or 2.53% of his portfolio), Texas Instruments (+39%, or 1.22% of his portfolio) and Oddity Tech.

Daniel Loeb (Third Point) opened a new line in Apple for 4.73% of his portfolio of listed US stocks, but also in Amphenol (2.17%), KB Home (1.7%), Roper Technologies (1.56%), Live Nation (1.47%), Hess Corp (1.06%), ASML, MSCI, CRH, Micron Technology and Dynatrace. He lightened up on PG&E, Microsoft, Meta Platforms, Bath & Body Works, Alphabet, Ferguson and International Flavors & Fragrances. His favorite position remains Amazon, which accounts for 11.36% of his portfolio of listed US stocks.

Chuck Akre (Akre Capital Management) reinforced CoStar, Brookfield Corp (as did Bill Ackman), SBA Communications and bought Airbnb. He also lightened his load on Mastercard (his first position) and CarMax.

David Tepper (Appaloosa Management) lightened some new Chinese positions opened or strengthened in the previous quarter(Alibaba, Baidu, Pinduoduo), as well as the GAFAMs(Amazon, Microsoft, Meta Platforms, Alphabet). Among these significant reinforcements is Lyft (1.82% of its portfolio). Alibaba remains in first place (12.24% of his portfolio).

Howard Marks (Oaktree Capital Management) carried out dozens of transactions. The most noteworthy of these were the 13% reduction in his top position Torm (it still accounts for 32.8% of his portfolio), Runway Growth Finance and Freeport-McMoran, his reinforcement in Star Bulk Carriers and the purchase of new positions in Liberty Global, Trip.com, Gerdau and Altice USA,

Pat Dorsey (Dorsey Asset Management) sold part of his positions in Meta Platforms, Wix.com and Alphabet to strengthen Autozone (+30%, or 10.7% of his US-listed portfolio) and buy Sprout Social (7.3% of his portfolio).

Seth Klarman (Baupost Group), the spiritual descendant of Warren Buffett, has been very active over the last quarter, with purchases of new lines: Humana, Solventum, WillScot, Capri Holdings and Verisign. Reinforcements include Willis Towers Watson, CRH (like Daniel Loeb), Clarivate, Jazz Pharmaceuticals, Wesco International, Eagle Materials and Fortrea Holdings. His reductions include Fidelity National Information Services, Alphabet, Viasat.

Bill Ackman (Pershing Square Capital Management) opened a position in Nike (2.20% of his portfolio) and Brookfield Corp (2.73%), and reduced his positions in Chipotle Mexican Grill and Alphabet. The Hilton Worldwide hotel chain became its number-one position this quarter. It represents 18.76% of his portfolio of listed US stocks.

Mohnish Pabrai (Pabrai Investments), the highly concentrated Indian manager with 4 US positions, kept his portfolio moving. We note a significant reinforcement in Arch Resources (+179%, or 25.6% of his portfolio) and an equally significant reduction in CONSOL Energy (-53%, or 7.54% of his portfolio). Alpha Metallurgical Resources still represents 54% of the portfolio, a real conviction!

François Rochon (Giverny Capital) opted for the status quo, adding slightly to his top 15 holdings, notably Booking Holdings (+77%, or 3.35% of his portfolio) and Starbucks (+92%, or 2.35% of his portfolio). On the lighter side, he halved his Markel Group position. His top position remains Berkshire Hathaway, Warren Buffett's holding company.