BIG TECH WEEKLY | Only Tesla Got Positive Exposure In Q1 13F

Big-Tech’s Performance

This week, despite Powell's "weak hawkish" statement, but the April CPI showed signs of a slight retreat, the market once again wild, the three major stock indexes to new highs.

Despite the reemergence of meme stocks in the first half of the week, times are different now, and it's difficult to have a continuous surge without a massive short squeeze. On the contrary, the emergence of ChatGPT 4o once again brought up AI fever, just next week is NVIDIA earnings, the market focus once again returned to the big technology.

By the close of trading on May 16, the best performer over the past week was $NVIDIA Corp(NVDA)$ +6.32%, followed by $Apple(AAPL)$ +2.86%, $Alphabet(GOOGL)$ $Alphabet(GOOG)$ +2.48%, $Microsoft(MSFT)$ +2.10%, $Tesla Motors(TSLA)$ +1.67%, $Meta Platforms, Inc.(META)$ -0.46% and $Amazon.com(AMZN)$ -3.1%.

Big-Tech’s Key Strategy

Did institutions reduce or increase their positions in Big Tech in Q1?

Q1's 13F are coming out one after another, although the Q1 market is still at new highs, the attitude of institutions towards big technology also shows some differences. Warren Buffett reduced Apple, Soros ally Druckenmiller reduced Nvidia, although they have expressed the meaning of "pause", the long-term is still bullish, but this is also a kind of institutions on the short-term views of the attitude of the different.

Of the top seven tech stocks, only Microsoft and Tesla saw their number of institutional positions decrease QoQ (relative to Q4), but instead, Apple, whose stock price underperformed, gained more institutional favor, increasing its number of institutional positions by as much as 13%, while Nvidia saw its number of institutional positions increase by 6.9% due to its strong performance.

However, from the shares of institutional holdings, except for Tesla's institutional holdings increased by 11.7%, the rest are all decreasing from the previous year. This also means that most of the institutional longs in Tesla are "die-hard" fans who buy more and more as the market falls. While META and NVDA decreased by 16.5% and 14.4% respectively, although both stocks gained extremely good gains in Q1, the number of institutional positions also increased, but on average, each institution has more or less reduced its holdings.

So the question is, which funds are taking more orders at higher levels?

By the way, this is only published 13F institutions, as of with the position on March 31, and since the market changed suddenly in April, in fact, may have been completely different, so this is only for reference.

Big-Tech Weekly Options Watcher

Next week, the much-anticipated NVDA earnings report will be released, but NVDA's overall IV, while high, is not as high as it has been on previous occasions, with an overall IV Rank of only 67% and an IV Percentile of 76%, and the market is not expecting much volatility from this report.

May 24 expiration of the week of Call, open positions concentrated in the 950-1000 position, which is different from the previous financial report is more biased in the out-of-the-money 10%, and Put open positions peaked at 800, selling annualized has 19%, and with leverage can be more than 113%, and this position to receive the positive shares, but also a lot of investors dream of.

Big-Tech Portfolio

The Magnificent Seven (Magnificent Seven) form a portfolio (the "TANMAMG" portfolio) that is equally weighted and reweighted quarterly. The backtest results are far outperforming the S&P 500 since 2015, with a total return of 1,785%, and the SPY has returned 203% over the same period, which have been record highs!

The broader market hit a new high this week and the portfolio's year-to-date return hit a new high of 19.15%, outpacing the SPY's 7.57%.

The portfolio's Sharpe ratio for the past year was 2.7, while the SPY was 2.3 and the portfolio's information ratio was 1.8