An elite hedge fund slashed its Nvidia and Tesla bets last quarter — and boosted its GameStop stake

Portfolio Adjustments - Renaissance Technologies reduced its Tesla stake by 86%, from 2.1 million shares to 284,000 shares, decreasing the position's value from $406 million to $74 million [3] - The fund halved its Nvidia stake to approximately 3.5 million shares, reducing the position's value from $867 million to $428 million [4] - RenTech increased its GameStop position by over 40% to 1.9 million shares, worth $44 million at the quarter's close [7] Stock Performance - Tesla stock gained 26% during the period, despite RenTech's significant reduction in its stake [3] - Nvidia shares rose 20% during the quarter, even as the fund cut its position in half [4] - Tesla and Nvidia have been among the world's hottest stocks this year, with gains of 33% and 195% respectively [4] Portfolio Composition - RenTech's overall stock portfolio increased in value by 13% to $66.5 billion last quarter [6] - The fund's largest positions included a $1.4 billion stake in Palantir and a $975 million position in Novo Nordisk [6] - Tesla dropped from RenTech's 10th-largest holding to outside the top 200, while Nvidia fell from third to tenth [3][4] Investment Strategy - RenTech relies on algorithms to determine many of its trades, often resulting in significant changes to its stock portfolio each quarter [5] - Quarterly portfolio updates provide only a snapshot of the firm's holdings on a particular date and do not include short sales, private investments, or overseas wagers [7] - The updates may not fully reflect the investing strategy behind the picks, especially when algorithms drive the trades [8]