Hedge Funds are Buying and Selling These 10 AI Stocks

4. Alphabet Inc (NASDAQ:GOOG)

Total Number of Hedge Fund Investors as of the End of Q2: 165

Total Number of Hedge Fund Investors as of the End of Q1: 165

Billionaire Bill Ackman’s Pershing Square reduced its stake in Google-parent Alphabet’s class C capital stock (GOOG) by 19.5% to 7.55 million shares and in its class A capital stock (GOOGL) by 8.5% to 3.99 million shares. Chris Hohn’s TCI increased its hold in the company by about 400% while billionaire Philippe Laffont reduced his stake in Alphabet by 39% to $504 million.

Cooper Investors Global Equities Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q2 2024 investor letter:

“Unsurprisingly the portfolio’s best performers in the very short term reflect this pattern, having narrowed to those most obviously exposed to the AI story – TSMC and Alphabet Inc. (NASDAQ:GOOG). While the portfolio has owned semiconductor companies for years it remains diversified and is underweight the group from an active risk perspective, dragging on relative performance in the last six months. The portfolio is currently positioned to take advantage of the Value Latency we see in smaller sized companies, and the performance of the quarter has been more aligned with those factors.

While this positioning is painful in the short-term, we see considerable embedded value in our portfolio. We also see considerable risks and uncertainties existing in the AI theme that are not reflected in the Value Latency on offer in many stocks that have surged.

Returning to the AI story, today the portfolio has around 10% of capital invested across TSMC and Alphabet. Meantime, Alphabet has multiple value levers to  pull across AI-augmented search, YouTube (now the ‘must-have’ streaming platform for young people) and Google Cloud.”