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Nowadays, artificial intelligence (AI) has become a major asset in the field of hedge fund management. Two billionaire managers particularly stand out in this area by choosing AI stocks which have aroused the enthusiasm of many investors. However, it is interesting to note that among their choices, we do not find the company Nvidia, although it is often associated with AI.
Billionaire Hedge Fund Managers in 2023
Hedge fund managers have a significant impact on the financial market, particularly in the securities sector. artificial intelligence (AI). In 2023, the most prominent figures in this field include Ken Griffin (Citadel), Jim Simons (Renaissance Technologies), and Ray Dalio (Bridgewater Associates). According to Forbes, here is the ranking of the ten richest hedge fund managers:
- Ken Griffin – Citadel ($35 billion)
- Jim Simons – Renaissance Technologies ($28.1 billion)
- Ray Dalio – Bridgewater Associates ($19.1 billion)
- David Tepper – Appaloosa Management ($18.5 billion)
- Steve Cohen – Point72 Asset Management ($17.5 billion)
- Carl Icahn – Icahn Enterprises ($17.5 billion)
- Michael Platt – BlueCrest Capital Management ($16 billion)
- Israel Englander – Millennium Management ($11.5 billion)
- Chase Coleman – Tiger Global Management ($8.5 billion)
- David Shaw – D.E. Shaw & Co. ($7.9 billion)
Although Jim Simons has passed away, Renaissance Technologies remains a major player in the field.
AI Investments of the Richest Managers
Carl Icahn and Michael Platt are notable for the absence of investments in AI within their main portfolios. On the other hand, most of the other billionaires cited invest heavily in this sector. The two favorite AI stocks among these managers are Amazon And Microsoft.
Amazon and Microsoft: The Favorites of Billionaires
Seven of the ten richest fund managers have Amazon in their five largest positions. Microsoft follows closely, being in the top five positions for half of managers.
Steve Cohen of Point72 Asset Management and Israel Englander of Millennium Management prefer Amazon, making it their top stock. For David Tepper of Appaloosa Management, Amazon is his second-largest holding.
Microsoft is favored by David Shaw of D.E. Shaw & Co, where it represents the largest share of his portfolio. Chase Coleman of Tiger Global Management does the same, with Microsoft in second place. Finally, while this isn’t Ken Griffin’s biggest position at Citadel, Microsoft remains his top AI stock.
The Other Candidates
Although she is close, Nvidia is not among the two favorite AI stocks of managers. Four of them have Nvidia in their top five assets, but it is not primary to any of them.
Meta Platforms is also noted, appearing in the top five of three managers, and being Chase Coleman’s main asset at Tiger Global Management.
Why Amazon and Microsoft?
Amazon dominates the cloud services market through Amazon Web Services, directly benefiting from AI applications. Additionally, its use of AI in e-commerce optimizes efficiency and profitability.
Microsoft is leveraging its partnership with OpenAI, integrating GPT-4 into its products. Leader in cloud services, it also benefits from the rise of AI, just like Amazon.
The rise of cloud and AI models ensures growing revenues for Amazon and Microsoft, making these companies wise choices for investing in AI.
