A clutch of big-name hedge funds have made huge gains in the opening weeks of 2024 after well-timed decisions to increase their bets on chipmaker Nvidia late last year, even after the shares had already soared in price.
Boston-based Arrowstreet Capital bought almost 4mn shares in Nvidia in the fourth quarter, building its position to $2.1bn by the end of the year, according to regulatory filings. The company will have made a profit of at least $1bn so far this year on its holding, assuming it was maintained.
Nvidia had already become a favourite holding of the hedge fund industry during its blistering rally of the past year. But, despite warnings of a bubble from some commentators, the fourth-quarter filings show that many big-name funds continued to ramp up their bets on further gains.