Wall Street hedge funds trim Megacap positions, shift to new bets in Q3
Some of Wall Street's largest hedge funds reduced exposure to high-profile “Magnificent Seven” tech stocks in the third quarter, while increasing positions in sectors such as application software, e-commerce, and payments, according to latest fund disclosures.
Bridgewater Associates, which outperformed peers in the first nine months of 2025, slashed stakes in Nvidia by nearly two-thirds to 2.5 million shares and cut Alphabet holdings by more than 50% to 2.65 million shares. Amazon was trimmed by 9.6%, and Broadcom by about 27%. The fund boosted exposure to software and payments stocks, increasing positions in Adobe, Dynatrace, and Etsy, News.Az reports, citing Reuters.
Bridgewater’s chief investment officers warned of rising risks to market stability amid these shifts. The fund currently manages $92.1 billion.
Discovery Capital, led by Rob Citrone, took new positions in Alphabet, Cleveland-Cliffs, Cigna, and Elevance Health, while exiting exploration and production stocks such as EQT, Antero Resources, and Range Resources. The fund also doubled down on critical minerals producer Ramaco Resources and reduced its stake in Mexico’s America Movil by 11.5%.
Balyasny Asset Management notably increased its stake in Apple, even as other investors, including Berkshire Hathaway, reduced exposure. The firm trimmed Amazon by 41% and added positions in insurers AIG and Allstate and digital infrastructure company American Tower.
Tiger Global Management reduced its Meta holdings to 2.8 million shares, valued at $2.1 billion, and exited stakes in Eli Lilly, Novo Nordisk, and CrowdStrike. New positions included Netflix and Klarna.
Coatue Management adjusted its AI and tech exposure, cutting Nvidia by 14.1% and reducing Tesla, Amazon, CoreWeave, and Arm Holdings. The fund increased stakes in Microsoft, Meta, and Alibaba.
These portfolio moves reflect hedge funds’ strategic rotation away from some megacap tech names toward diversified opportunities amid growing market uncertainty.
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