Coatue Q2 Portfolio: Oracle, ARM, CoreWeave, Broadcom, Nvidia; Cuts AMD, Alibaba, Eli Lilly, Monolithic Power, Super Micro.

Philippe Laffont's Coatue has updated its Q2 portfolio, increasing stakes in Oracle and ARM, and cutting positions in Alibaba, AMD, and Eli Lilly. The firm also sold out of Monolithic Power and Super Micro. Coatue's moves reflect a shift towards AI infrastructure and cloud plays, with a focus on strengthening names sensitive to these trends.

Top hedge funds, including Bridgewater, Tiger Global, Discovery Capital, and Coatue, have significantly increased their investments in Big Tech and AI-related stocks in the second quarter of 2025, according to their latest 13F filings. This shift marks a notable turnaround from earlier this year when top money managers were cautious about Big Tech due to market volatility and concerns around inflation and potential AI bubbles.

Bridgewater Associates, founded by Ray Dalio, more than doubled its bets in Nvidia, increasing its holdings to 7.23 million shares worth $1.14 billion. The fund also increased its stakes in Alphabet and Microsoft by 84.1% and 111.9%, respectively [1]. Discovery Capital, under the leadership of Rob Citrone, doubled its stake in Meta Platforms and took a new position in Nvidia-backed cloud provider CoreWeave. Additionally, Tiger Global Management bought more shares in Amazon, Alphabet, Nvidia, Microsoft, and Meta, while Coatue Management unveiled new positions in Arm Holdings and Oracle [1].

These investments reflect a broader trend of hedge funds cutting exposure to weaker sectors like defense and retail and shifting towards momentum investing. The S&P 500 has seen a 10% gain so far this year, buoyed largely by the largest tech companies [1].

Coatue Management's Q2 portfolio update also reflects this trend. The firm increased its stakes in Oracle and ARM, while cutting positions in Alibaba, AMD, and Eli Lilly. Coatue sold out of Monolithic Power and Super Micro, indicating a strategic pivot towards AI infrastructure and cloud plays [2].

Tencent, a major player in China's digital economy, reported a 15% year-on-year revenue increase in Q2 2025, driven by AI gaming, fintech rebound, and cloud infrastructure investments. However, the company faces rising costs, regulatory headwinds, and content-driven challenges, which could impact its short-term profitability [2].

These developments underscore the growing importance of AI and cloud technologies in the investment landscape. Hedge funds are increasingly focusing on these sectors, reflecting a broader shift in the market towards technology-driven growth. As Tencent's Q2 results suggest, the key challenge for companies in these sectors is navigating regulatory risks and balancing long-term strategic investments with short-term profitability.

References:
[1] https://m.economictimes.com/tech/technology/hedge-funds-shift-bets-to-double-down-on-big-tech-amid-ai-boom/articleshow/123316525.cms
[2] https://www.ainvest.com/news/tencent-q2-2025-earnings-ai-gaming-sustain-high-growth-momentum-rising-costs-2508/