Key Points Amazon's stock performance has lagged its peers in 2025. Meta Platforms has fallen since Druckenmiller bought it in Q3. MercadoLibre is a great way to gain international exposure. 10 stocks we like better than Amazon › Keeping tabs on what billionaire hedge fund managers are doing is considered by some to be a great way to initiate investment ideas. While you shouldn't blindly follow what these hedge funds are doing with their investments because every investor has different goals for ...

Core Insights - A football star is supporting a hedge fund aiming to revitalize America's largest theme-park operator, indicating potential changes in management or strategy to improve performance [1] Group 1 - The hedge fund is looking to shake the theme-park operator out of its current struggles, suggesting that the company may be facing operational or financial challenges [1] - The football star expressed enthusiasm about the opportunity, highlighting the potential for significant investment interest and public attention [1]

Core Insights - The hedge fund industry has reached a record asset level of $5 trillion, driven by significant net inflows and strong performance [1][2] - The third quarter of 2025 saw net inflows of nearly $34 billion, marking the largest quarterly inflow since 2007, with average returns of 5% encouraging renewed interest [2] - The hedge fund sector has been recovering from skepticism since the 2008 financial crisis, with assets under management regaining pre-crisis levels around 2013 and experiencing steady growth since [3] Industry Dynamics - Institutional investors are increasingly seeking to diversify their portfolios away from the bull market, leading to a resurgence in demand for hedge funds [4] - The largest hedge funds, those with over $5 billion in assets under management, are capturing the majority of inflows, highlighting a "winner-takes-all" dynamic within the industry [4] - The hedge fund industry is becoming more mainstream, reflecting a split in the U.S. economy where a wealthy segment seeks to protect and grow their wealth while a larger segment faces financial strain [5][6] Investor Profile - Hedge funds are primarily accessible to accredited investors, defined as individuals earning at least $200,000 annually or possessing a net worth of $1 million [7] - A significant portion of hedge fund assets under management comes from wealthy institutions such as pensions, endowments, and sovereign entities, which are looking to enhance their investment strategies [7]

Core Insights - Bill Ackman's investment in Chipotle Mexican Grill has significantly declined, with the stock reaching a 52-week low of $38.76, down 35% year-to-date and 28% over the past year [1][3] - Ackman initially purchased Chipotle shares in 2016, witnessing a remarkable increase of over 388% from his average buy price of $8.08, making it a cornerstone of Pershing Square Capital's portfolio [2][3] - Despite the current downturn, Chipotle still represents 5.82% of Pershing's portfolio, indicating its importance despite recent performance [3] Investment Strategy - Ackman's strategic selling from 2018 to 2024 demonstrates effective timing, as he sold millions of shares at prices ranging from $9 to $62, securing billions in gains while maintaining a significant position [4][5] - This ability to cash out at peak valuations has provided a buffer for Pershing Square's portfolio against the current market decline [5] Long-term Outlook - Despite the recent stock pullback, Chipotle's long-term performance and strategic initiatives, such as digital ordering and loyalty programs, continue to attract investor interest [6] - Ackman's long-term confidence in Chipotle's pricing power and growth potential suggests that the current dip may be viewed as a temporary setback rather than a fundamental collapse [6][7]

Summary of Hedge Fund Trend Monitor Industry Overview - The report analyzes the holdings of 981 hedge funds with a total of $3.8 trillion in gross equity positions as of the start of Q3 2025, comprising $2.5 trillion long and $1.3 trillion short [9][10]. Key Points Performance Metrics - Hedge funds have achieved a year-to-date (YTD) return of +8%, with the Hedge Fund VIP list returning +15% YTD, outperforming the S&P 500 (+11%) and the equal-weight S&P 500 (+7%) [10][11]. - A recent short squeeze has led to a +13% YTD return for a basket of the most concentrated shorts, despite a 30% decline earlier in the year [2][11]. Leverage and Short Interest - Gross leverage for equity hedge funds remains elevated, ranking in the 95th percentile historically, while short interest for the median S&P 500 stock is at 2.3% of float, near the highest level since 2019 [10][24]. - The median S&P 500 stock's short interest has slightly decreased from 2.4% to 2.3% since June but remains above the long-term average [10][24]. Hedge Fund VIP List - The most popular long positions among hedge funds include mega-cap tech companies such as AMZN, MSFT, META, NVDA, and GOOGL, with TSLA rejoining the list for the first time since 2022 [10][62]. - The Hedge Fund VIP list has historically outperformed the S&P 500 in 59% of quarters since 2001, with an average quarterly excess return of 50 basis points [10][84]. Sector Allocations - Hedge funds have increased their net tilt towards the Health Care sector, despite a -7% return for the sector during Q2 2025, particularly in Biopharma [10][69]. - The largest underweight sectors include Communication Services and Information Technology, with the latter seeing a significant reduction in net tilt [10][69]. Market Dynamics - The current market environment is characterized by narrow breadth, with the median S&P 500 stock trading 11% below its 52-week high, indicating potential risks for short squeezes [29][30]. - Hedge fund crowding has been noted as a hindrance to alpha generation during the earnings season, with popular stocks underperforming relative to their earnings surprises [4][49]. Rising and Falling Stars - The quarter's Rising Stars are dominated by cyclicals, particularly in Financials, with notable increases in popularity for stocks like COF, FI, and BRO [10][75]. - Falling Stars include GOOGL and several software stocks, indicating a shift in hedge fund sentiment [10][75]. Conclusion - The report highlights the resilience of hedge funds in a volatile market, with strategic shifts in sector allocations and a focus on popular long positions. The dynamics of short interest and market breadth suggest potential opportunities and risks for investors moving forward [3][29][34].

Core Insights - Appaloosa hedge fund, led by David Tepper, has made significant changes to its stock positions in the second quarter, including new investments in airline stocks and a substantial stake in Intel [1][2]. New Positions - Appaloosa has taken new stakes in several companies, with Intel being a major focus, acquiring eight million shares. The fund has also invested in Delta and United Airlines [2]. Exited Positions - The fund exited its put options on Apple and sold stakes in two casino companies. Notably, it also divested from Broadcom, which was a new investment in the previous quarter [3]. Changes to Existing Positions - The fund increased its stakes in several stocks, with Intel, RTX Corp, IQVIA Holdings, United Airlines, Delta Air Lines, Whirlpool, Goodyear, and Mohawk Industries showing the largest increases [4]. Largest Increases - UnitedHealth Group saw a 1,300% increase, Block Inc increased by 756%, and Nvidia by 483%. The increased stake in UnitedHealth made it the top holding in the fund at 12% [6][7]. Largest Decreases - Despite increasing stakes in Nvidia and Amazon, the fund reduced its positions in Meta Platforms, Alphabet, and Microsoft, indicating a selective approach within the tech sector. Alibaba remains a significant holding at 12% despite a reduction [8][10].