Investors who showed Q1 bets on Nvidia may have got boost as it joined $1 trillion club

5:10 pm Tuesday, May 30th, 2023

By Carolina Mandl

NEW YORK (Reuters) – Nvidia Corp’s debut in the club of U.S. companies valued at $1 trillion on Tuesday may have given a boost to a number of portfolio managers who bought in to the stock, according to data revealed in first-quarter hedge fund filings, such as Australia listed boutique investment firm GQG Partners.

Quarterly securities filings known as 13-Fs are backward- looking but show what funds owned on the last day of the quarter and are one of the few ways that hedge funds and other institutional investors have to declare their positions. They may not reflect current holdings, as fund managers may have added or sold shares since then.

Many investors have piled in to the chipmaker that has quickly become one of the biggest winners of the AI boom. Nvidia’s gains have also been boosted by the company’s update on revenue forecast last week, which surpassed the mean Wall Street estimate by more the 50%.

Among the biggest potential winners are Fort Lauderdale, Florida-based, Australia-listed investment firm GQG Partners Inc, which added 8.2 million shares in Nvidia Corp in the first quarter, according to a regulatory filing.

The stake, acquired for $2.3 billion, is now worth $3.3 billion or roughly 45% more. In the previous quarter, Nvidia was not part of GQG’s portfolio.

GQG, which earlier this year invested in shares of India’s Adani group, did not immediately respond to a Reuters request for comment.

Tiger Global Management, Wellington Management Group and Moore Capital are also among the investors that added shares of Nvidia in the first quarter, ahead of its 45% price jump from April 3 through Tuesday.

Among prominent investors who sold Nvidia’s shares before its recent jump is ARK Invest. ARK CEO Cathie Wood said in a tweet that the shares’ current valuation seems to imply Nvidia does not have competitors. “Now up ~80-fold, investors seem to think NVDA is the only play. It is not!” she said, adding the company is priced ahead of the curve.

California Public Employees’ Retirement System (CalPERS) sold roughly 1 million shares in Nvidia, but remained with about $1.2 billion in shares in the first quarter.

(Reporting by Carolina Mandl in New York; Editing by Megan Davies and Matthew Lewis)