Third Point's flagship fund increased its holdings in Nvidia for the fourth consecutive quarter, while completely exiting its position in Apple, a member of the Magnificent Seven. The move underscores a strategic pivot toward AI-driven growth stocks amid shifting market dynamics.
- Third Point increased its NVDA stake to 1.2 million shares over four consecutive quarters
- The fund fully exited its Apple (AAPL) position, ending a multi-year holding
- Nvidia’s AI-driven momentum continues to attract top-tier institutional capital
- Apple’s departure may signal a reevaluation of growth sustainability among megacaps
- Magnificent Seven stocks remain dominant in S&P 500 performance and weighting
- Portfolio rebalancing by major hedge funds can influence algorithmic trading and market flows
Billionaire investor Dan Loeb’s Third Point LLC has revealed a significant portfolio shift in its latest filing, marking the fourth consecutive quarter of increasing exposure to Nvidia (NVDA), while simultaneously liquidating its entire stake in Apple (AAPL). The fund’s position in NVDA has grown to approximately 1.2 million shares, representing a 45% increase in ownership over the past year. This multi-quarter accumulation aligns with Nvidia’s dominant role in the artificial intelligence infrastructure space, as the company continues to lead in data center chip demand and generative AI adoption. In contrast, Third Point has fully exited its Apple position, which had been a core holding in the fund’s equity portfolio for over three years. The decision follows a period of stagnant revenue growth and elevated valuation concerns, especially in the consumer electronics segment. Apple’s stock, which had appreciated 22% year-to-date, now sees its largest institutional holder depart, potentially influencing short-term investor sentiment. The divergence in positioning highlights a growing polarization among top-tier hedge funds between AI-centric hardware leaders and more mature, high-multiple tech giants. With the Magnificent Seven stocks accounting for over 50% of the S&P 500’s total market capitalization, such shifts can trigger algorithmic repositioning and retail trading flows. The S&P 500 (^GSPC) has gained 18% year-to-date, with Nvidia alone contributing nearly 12% to the index’s performance.