Few traders deserve the adjective “legendary.” Ken Griffin is one in all them. He based Citadel in 1990. It now ranks as essentially the most profitable hedge fund of all time.
With Citadel’s portfolio together with hundreds of holdings, it is not stunning that Griffin owns all of the “Magnificent Seven” shares. Nonetheless, three seem like his favorites.
1. Nvidia
Citadel owns a bigger place in Nvidia (NASDAQ: NVDA) than every other particular person inventory. The one larger holding for the hedge fund is the SPDR S&P 500 ETF Belief. On the finish of 2023, Citadel’s stake in Nvidia totaled $1.8 billion.
Importantly, Griffin continued so as to add to Citadel’s stake in Nvidia within the fourth quarter of 2023. He purchased a further 1.58 million shares, rising his hedge fund’s place within the chipmaker by almost 77%.
We will simply guess why the billionaire investor likes Nvidia a lot. The corporate’s graphics processing items (GPUs) have loved staggering demand as organizations scrambled to construct, prepare, and run generative AI purposes.
2. Amazon
Microsoft is not too far behind Nvidia because the second-largest Magnificant Seven holding for Citadel. Nonetheless, I would not say the tech large is Griffin’s second-favorite Magnificent Seven inventory for a easy motive: He bought almost 16% of Citadel’s stake in Microsoft in This fall. Nevertheless it’s a unique story with Amazon (NASDAQ: AMZN).
On the finish of 2023, Amazon ranked behind Microsoft as Citadel’s third-largest particular person inventory holding. Griffin is clearly bullish about Amazon, evidenced by his enhance of Citadel’s stake within the inventory by virtually 223% in This fall.
What’s so engaging about Amazon? I would put bettering profitability close to the highest of the record. Griffin additionally undoubtedly acknowledges the great alternative AI presents for Amazon Internet Companies (AWS).
3. Meta Platforms
Meta Platforms (NASDAQ: META) is Citadel’s fifth-largest place excluding the massive stake within the SPDR S&P 500 ETF Belief. Exiting 2023, Citadel owned 2.46 million shares of the social media large price over $869 million.
Earlier than This fall, Meta wasn’t almost as large of a holding for the hedge fund. Griffin purchased 1.37 million shares within the final quarter of 2023, rising Citadel’s stake in Meta by 127%. As was the case for the opposite prime Magnificent Seven shares, the hedge fund additionally owned name and put choices for Meta.
I believe Griffin likes Meta for a number of the similar causes he likes Amazon. Meta’s backside line has improved considerably thanks partly to cost-cutting initiatives. The corporate additionally ought to have a serious development alternative with AI, albeit in some alternative ways than Amazon.
Are these Magnificent Seven shares sensible picks now?
Nvidia, Amazon, and Meta have retreated from their all-time highs in latest weeks. I would not be stunned in the event that they fall additional. Nonetheless, important pullbacks would create glorious shopping for alternatives for all three shares, for my part.
Competitors is rising within the AI chip market. I do not anticipate Nvidia to command as formidable a market place going ahead because it has up to now. Then again, the demand for AI chips will virtually actually proceed to extend. Nvidia’s innovation ought to maintain it on prime.
Amazon is not in peril of giving up its management in e-commerce. Its AWS unit would possibly lose market share to different cloud suppliers, however I nonetheless anticipate it to ship robust development as organizations transfer their apps and information to the cloud. I additionally search for Amazon to do what it is all the time performed and discover new avenues for development.
Meta has demonstrated the resilience of its social media platforms. AI-powered enterprise messaging could possibly be a key development driver for the corporate for years to come back. I additionally like Meta’s determination to open up its Horizon digital actuality working system to third-party gadget makers.
Does Ken Griffin nonetheless view these Magnificent Seven shares pretty much as good picks? We should always discover out in just a few weeks when Citadel discloses its 2024 first-quarter holdings.
Do you have to make investments $1,000 in Amazon proper now?
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Randi Zuckerberg, a former director of market growth and spokeswoman for Fb and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Idiot’s board of administrators. John Mackey, former CEO of Entire Meals Market, an Amazon subsidiary, is a member of The Motley Idiot’s board of administrators. Keith Speights has positions in Amazon, Meta Platforms, and Microsoft. The Motley Idiot has positions in and recommends Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Idiot recommends the next choices: lengthy January 2026 $395 calls on Microsoft and brief January 2026 $405 calls on Microsoft. The Motley Idiot has a disclosure coverage.
Billionaire Ken Griffin Owns All of the “Magnificent Seven” Shares. These 3 Are His Favorites. was initially revealed by The Motley Idiot
