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Trade Overview: Where Gurus Found Value in the 2nd Quarter

Published 2024-09-06, 11:30 a/m
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With the latest round of 13F filings released over the past month, investors and market watchers alike are interested in seeing where the major hedge fund managers are finding value opportunities.

BackgroundManagers with more than $100 million in assets under management are required to disclose their holdings to the SEC each quarter via 13F filings. These filings are due 45 days after the quarter end date. For second-quarter 2024, that means managers must disclose all qualifying assets held on June 30, 2024 by Aug. 15, 2024. Qualifying assets include long positions in U.S. equities and ADRs, call/put options and convertible debt securities. Shorts, cash positions, foreign investments and other assets are not included.

Investors can take advantage of these 13F filings to create portfolios from managers that have proven past success. Despite the 45-day delay in reporting, research has shown that investing alongside a single manager or group of managers can outperform the market. The key is to identify the best and most consistent funds to copy.

The statistics in this report are based on our Premium gurus. These gurus are our hand-picked, best-performing value investors that have proven long-term records.

Magnificent 7 stocks make up large portion of the Aggregated PortfolioThe GuruFocus Aggregated Portfolio, a Premium feature based on these managers' quarterly filings, shows the 10 most broadly held stocks as of the end of the second quarter of 2024 included some Magnificent Seven names that were also popular in the previous quarter, such as software giant Microsoft Corp. (NASDAQ:MSFT), Google parent Alphabet Inc. (NASDAQ:GOOGL) and social media leader Meta (NASDAQ:META) Platforms Inc. (NASDAQ:META).

TickerCompanyNo. of Guru OwnersNo. of BuysNo. of Sells
MSFTMicrosoft Corp. 651739
GOOGLAlphabet Inc.54936
AMZNAmazon.com Inc (NASDAQ:AMZN).491428
METAMeta Platforms Inc. 471333
UNHUnitedHealth Group Inc (NYSE:UNH).442615
AAPLApple Inc (NASDAQ:AAPL). 422117
BRK.BBerkshire Hathaway Inc. (NYSE:BRKa)391219
DISThe Walt Disney (NYSE:DIS) Co. 361219
TSM Taiwan Semiconductor Manufacturing Co. Ltd. 351518
BACBank of America Corp (NYSE:BAC).351022
Other big names among Guru Hot PicksWhile these stocks are quite popular overall, they did not all necessarily see the heaviest guru buying activity during the three months ended June 30. According to GuruFocus Hot Picks, that honor only goes to a handful of companies, including UnitedHealth (NYSE:UNH), Apple (NASDAQ:AAPL), CVS Health Corp. (NYSE:NYSE:CVS) and Exxon Mobil Corp. (NYSE:NYSE:XOM). However, a couple of these companies also recorded a lot of selling activity over the same period, such as Microsoft and Taiwan Semiconductor (NYSE:TSM).

TickerCompanyBuysSellsNo. of Guru Owners
UNHUnitedHealth Group Inc. 251340
AAPL Apple Inc. 211641
CVSCVS Health Corp. 19826
XOMExxon Mobil Corp. 19925
MSFTMicrosoft Corp. 173959
AVGOBroadcom (NASDAQ:AVGO) Inc. 161126
COPConocoPhillips (NYSE:COP)161027
ADBEAdobe (NASDAQ:ADBE) Inc.161129
GEVGE Vernova Inc.151318
TSMTaiwan Semiconductor Manufacturing Co. Ltd. 151833
A mix of stocks make up Consensus Picks Then there are those stocks that were bought by at least two gurus during the quarter, but did not record any sells. GuruFocus Consensus Picks shows these companies included names like Natera Inc. (NASDAQ:NTRA), Molina Healthcare Inc. (NYSE:MOH) and even a couple exchange-traded funds.

TickerCompanyNo. of BuysNo. of Guru Owners
NTRANatera Inc. 89
MOHMolina Healthcare Inc. 89
GRALGrail Inc. 77
COLLCollegium Pharmaceutical Inc. 77
TSTenaris SA66
IBITiShares Bitcoin Trust ETF66
IWFiShares Russell 1000 Growth ETF67
ZETAZeta Global (NYSE:ZETA) Holdings Corp. 66
CAVACava Group (NYSE:CAVA) Inc. 66
TDYTeledyne Technologies Inc. 68
A glance at selling activityOn the sell side, GuruFocus Hot Picks found investors were shedding shares of a number of companies as well. While Pioneer Natural Resources Co. (NYSE:PXD) and Shockwave Medical Inc. (SWAV) are listed, they were not necessarily sold. Rather, these companies were acquired or merged with other companies and, therefore, are recorded as a sale in our database. As such, News Corp. (NASDAQ:NWSA) actually recorded the largest number of sell transactions for the period.

TickerCompanyBuys SellsNo. of Guru Owners
NWSANews Corp.099
BERY Berry Global Group Inc.086
LLoews Corp (NYSE:L). 087
MSAMSA Safety Inc. 084
REVGREV Group Inc. 084
IDCCInterDigital Inc.087
FTAIFTAI Aviation Ltd. 077
GFIGold Fields Ltd. 077
UPWKUpwork Inc. 064
ESEversource Energy064
Industry Trends analysisAs for gurus' investments within individual sectors, the GuruFocus Industry Trends page shows the heaviest buying occurred in the software industry, likely driven by the ongoing craze for artificial intelligence technology. However, several other industries recorded good numbers as well.

IndustryNo. of BuysNo. of SellsNo. of Holdings
Software3353111,168
Biotechnology190302737
Oil & Gas188217767
Banks136159745
REITs134185482
Hardware125129455
Insurance11979415
Retail- Cyclical118117441
Semiconductors109128393
Industrial Products100123425
International exposureBeyond the U.S., GuruFocus' Geographic Trends shows other areas of the world where gurus found potential value opportunities.

CountryNo. of BuysNo. of Sells
United States125123
Canada3546
United Kingdom3027
Ireland2016
China1924
Bermuda179
Luxembourg157
Israel1316
Brazil137
Switzerland1312
You can see their overall exposure to different countries in the map below.

During the quarter, a number of well-known gurus were also making large bets in international companies by either entering new positions or expanding their existing holdings. For example, Canadian investor Francis Chou (Trades, Portfolio) boosted his stake in the Netherlands-based Stellantis NV (NYSE:NYSE:STLA). Spain's Azvalor also established a holding in Linea Directa Aseguradora SA (XMAD:LDA).

TickerCompanyGuruImpactNo. of Shares
XMAD:LDALinea Directa Aseguradora SAAzvalor Iberia Fi+8.43%2.73 million
CNHCNH Industrial NVTweedy Browne (Trades, Portfolio)+6.66%15.36 million
STLAStellantis NVFrancis Chou (Trades, Portfolio)+6.04%456,388
BIDUBaidu Inc (NASDAQ:BIDU). Michael Burry (Trades, Portfolio)+5.77%155,000
TSXV:RET.AReitmans Ltd. Chou RRSP Fund (Trades, Portfolio)+5.51%429,100
BABAAlibaba (NYSE:BABA) Group Holding Ltd. Michael Burry (Trades, Portfolio)+4.11%155,000
AZNAstraZeneca PLC (LON:AZN)George Soros (Trades, Portfolio)+3.66%2.45 million
BORRBorr Drilling Ltd. Azvalor Internacional FI (Trades, Portfolio)+3.65%6.66 million
TSX:MRCMorguard Corp.Chou RRSP Fund (Trades, Portfolio)+3.62%5,800
XMAD:GRFGrifols SAAzvalor Iberia FI (Trades, Portfolio)+3.31%157,506
What about ETFs?As for exchange-traded funds, gurus appeared to be loading up on exposure to indexes like the Standard & Poor's 500 (SPY (NYSE:SPY)).

TickerETFNo. of Guru OwnersNo. of Guru BuysNo. of Guru Sells
SPYS&P 500 ETF Trust1897
GLDSPDR Gold Shares (NYSE:GLD) ETF1056
RSPInvesco S&P 500 Equal Weight ETF964
XLFFinancial Select Sector SPDR943
EFAiShares MSCI EAFE ETF942
GDXVanEck Gold Miners ETF (NYSE:GDX)824
IVViShares Core S&P 500 ETF843
XLE (NYSE:XLE)Energy Select Sector SPDR Fund836
IJHiShares Core S&P Mid-Cap ETF752
IWMiShares Russell 2000 ETF752
Value opportunities aboundEven as the market continues to grapple with high inflation and interest rates, not to mention intensifying geopolitical conflicts and an upcoming presidential election, gurus' trading activity shows there are plenty of investment opportunities available in the current environment.

Related Guru Screens you may be interested in:

Real-Time Picks

Aggregated Portfolio

Consensus Picks

Hot Picks

Guru Bargains

Industry Trends

This content was originally published on Gurufocus.com

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