Big Investors Make Bold Moves: Insights from Recent 13F Filings
In the world of finance, the quarterly release of 13F filings gives retail investors a glimpse into the strategies of some of Wall Street’s most influential figures. These reports reveal which stocks major investors are buying and selling, allowing others to potentially glean insights for their own investment decisions.
Bill Ackman’s Strategic Bet on Nike
As of November 2024, notable investors like Bill Ackman, Howard Marks, and Michael Burry have increased their stakes in specific segments of the market, particularly those considered undervalued. Ackman, in particular, has taken a bold step by amassing up to 16.2 million shares of Nike Inc. (NYSE: NKE). This comes despite Nike’s current price hovering at only 63% of its 52-week high.
Pursuing a value investment strategy often involves taking risks, especially when a stock is underperforming. However, several factors could help Nike recover. Although broader economic conditions remain uncertain, affecting recession and inflation outlooks, Nike’s robust market capitalization of $115 billion positions it well to withstand economic fluctuations.
On Wall Street, many share Ackman’s optimism about Nike. Guggenheim analysts have maintained a Buy rating and value Nike at $110 per share, suggesting a potential upside of 42% from current levels.
Michael Burry and Howard Marks Look to China
The technology sector in China presents a compelling opportunity for investors like Michael Burry and Howard Marks, who are betting on significant dividends from their overseas investments. Burry has notably increased his investment in Alibaba Group (NYSE: BABA), joining other firms like Sanders Capital, which recently raised its stake by 0.3%, bringing its total to $1.9 billion.
Analysts at Barclays have assigned a price target of $130 for Alibaba, indicating a potential 53% upside for investors. Howard Marks also aims to capitalize on Chinese commerce, choosing PDD Holdings Inc. (NASDAQ: PDD) as his preferred stock. Currently, PDD trades at only 60% of its 52-week high, offering a similar discount to Nike. Analysts expect a price of $173.4 a share for PDD, suggesting a substantial upside of 74.6%.
Hedge Funds Embrace Bitcoin ETFs
In an effort to hedge against inflation, Paul Tudor Jones has heavily invested in Bitcoin, acquiring up to $230 million through the iShares Bitcoin Trust (NASDAQ: IBIT). This move aligns with a broader trend, as Goldman Sachs also invested $238 million in the same ETF during the second quarter of 2024. London-based Capula Management revealed an even larger position of $400 million in Bitcoin ETFs.
These significant investments indicate a growing confidence in cryptocurrency, especially amid market volatility and inflation concerns.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
