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In the realm of deep-tech investing, some billionaire hedge fund managers have a particular affinity for certain AI-related stocks. Two companies in particular stand out as their favorites, attracting the interest of savvy investors. Interestingly, despite its fame in the tech industry, Nvidia is not among their preferred choices.
The Richest Hedge Fund Managers
The year 2023 saw many managers of hedge funds invest massively inArtificial intelligence. However, two stocks have particularly attracted the attention of these investors. Oddly enough, Nvidia is not one of these stocks despite its spectacular growth.
Forbes has compiled a list of the richest hedge fund managers of 2023. Here are the top 10:
- 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
Amazon and Microsoft in the lead
On this prestigious list, these are above all Amazon And Microsoft which stand out as favorites of billionaire investors in Artificial Intelligence.
Amazon, for example, is in the top five positions of seven of Forbes’ ten richest managers. As for Microsoft, it is present in the first five positions of half of the managers on this list.
The lure of Amazon
Two fund managers, Steve Cohen of Point72 Asset Management and Israel Englander of Millennium Management, are particularly fond of Amazon. Amazon is the largest holding for these two funds, and the second largest for David Tepper’s Appaloosa Management.
Amazon has established itself as the world leader in cloud services, an area where AI plays a vital role in improving efficiency and profitability. Its Amazon Web Services (AWS) unit benefits greatly from this trend.
Microsoft, an AI giant
Microsoft also ranks high among hedge fund managers’ preferences. The company ranks first for David Shaw’s D.E. Shaw & Co. and second for Chase Coleman’s Tiger Global Management.
The partnership between Microsoft and OpenAI, creator of ChatGPT, greatly contributes to its success. GPT-4 has been integrated into many of Microsoft’s products, solidifying the company’s position as the second-largest cloud service provider.
And the others?
While Amazon and Microsoft dominate the rankings, it’s important to note that Nvidia remains a strong contender. Despite missing the top position in fund managers’ preferences, Nvidia is in the top five positions for four of the ten richest fund managers.
Another notable company is Meta Platforms, which is in the top five positions of three major fund managers. For Chase Coleman’s Tiger Global Management, Meta is even the largest position.
Why follow these choices?
Investing in the footsteps of billionaire hedge fund managers can be a wise strategy, provided you understand the underlying dynamics. Amazon and Microsoft offer strong prospects thanks to their dominance in cloud services and their commitment to AI.
In conclusion, the two favorite AI stocks of billionaire hedge fund managers are Amazon and Microsoft. Their AI-driven strategies and strong performance make them top picks for any savvy investor.
