Louis Bacon's Portfolio Shifts: BAC, CSX, and HON Top New Buys; Microsoft and MDY See Significant Increases

Louis Moore Bacon's hedge fund, Moore Capital Management, has made significant changes to its portfolio in Q2 2025. Bacon added 219 stocks, including Bank of America Corp, CSX Corp, and Honeywell International Inc. He increased stakes in 97 stocks, notably Microsoft Corp and S&P MidCap 400 ETF. Bacon also sold out of 136 holdings, including Alibaba Group Holding Ltd and Dow Inc, and reduced positions in 71 stocks, including iShares Russell 2000 ETF.

In the second quarter of 2025, Louis Moore Bacon, the renowned hedge fund manager and founder of Moore Capital Management, made significant changes to his portfolio. Bacon, known for his global macro strategy, added 219 stocks, increased stakes in 97, sold out of 136, and reduced positions in 71. These moves offer insights into the market's current trends and Bacon's investment philosophy.

New Additions and Increases

Bacon added Bank of America Corp (BAC), CSX Corp (CSX), and Honeywell International Inc (HON) to his portfolio. The most significant addition was BAC, with 2,572,640 shares, accounting for 1.59% of the portfolio and a total value of $121.737 million. He also increased stakes in Microsoft Corp (MSFT) and S&P MidCap 400 ETF (MDY). The MSFT stake increased by 405,085 shares, while the MDY stake increased by 267,800 shares. These additions suggest Bacon's interest in the financial sector and technology, with a focus on growth and innovation.

Exits and Reductions

Bacon sold out of Alibaba Group Holding Ltd (BABA) and Dow Inc (DOW), and reduced positions in iShares Russell 2000 ETF (IWM) and SPDR S&P 500 ETF Trust (SPY). These moves indicate a shift away from certain sectors, potentially due to changes in Bacon's investment thesis or market conditions. The reductions in IWM and SPY, two broad-based ETFs, suggest a focus on more targeted investments.

Portfolio Overview

At the end of Q2 2025, Bacon's portfolio included 531 stocks, with top holdings including 4.7% in MDY, 2.69% in MSFT, 1.91% in NVIDIA Corp (NVDA), 1.59% in BAC, and 1.42% in Amazon.com Inc (AMZN). The holdings are concentrated across various industries, reflecting Bacon's diversified approach.

Implications

Bacon's portfolio shifts provide insights into the current market trends. His additions in the financial sector and technology suggest confidence in these areas. The exits and reductions, particularly in broad-based ETFs, indicate a focus on more targeted investments. These moves are consistent with Bacon's bold and global macro-based approach to investing.

References

[1] https://www.gurufocus.com/news/3065158/louis-moore-bacons-strategic-moves-ishares-russell-2000-etf-sees-significant-reduction