In the middle of August, Wall Street received a crucial data release for the third quarter. It was not an inflation report from the Bureau of Labor Statistics, but rather the deadline for institutional investors and money managers with over $100 million in assets under management to file Form 13F with the Securities and Exchange Commission. This form provides insight into the stocks bought and sold by top asset managers in the previous quarter.
One of the notable money managers investors keep an eye on is Billionaire Israel Englander of Millennium Management. In the latest 13F filing, Englander’s team manages around $216 billion in securities and made significant moves in the artificial intelligence (AI) sector. They reduced their positions in Nvidia and Palantir Technologies, two popular AI stocks, while increasing their stake in Super Micro Computer, a historically inexpensive AI stock facing challenges.
Englander’s fund trimmed its holdings in Nvidia, a long-time beneficiary of the AI revolution, and also decreased its position in Palantir Technologies, despite the company’s unique offerings in the AI space. On the other hand, they significantly increased their investment in Super Micro Computer, a company known for its customizable rack server and storage solutions catering to AI data centers.
While Super Micro Computer offers substantial growth potential at a low valuation, there are concerns about the company’s recent challenges, including allegations of accounting manipulation and supply chain disruptions. Despite these risks, Englander’s Millennium Management seems bullish on the stock.
In conclusion, while Englander made notable moves in the AI sector during the June quarter, investors should carefully consider the risks and potential rewards associated with each investment. The AI space remains dynamic, and staying informed about the latest trends and developments is crucial for making informed investment decisions.