Citadel and DE Shaw slashed Nvidia holdings ahead of market rout

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Citadel and DE Shaw slashed Nvidia holdings ahead of market rout
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Renaissance and Marshall Wace added to positions in chipmaking giant in second quarter, filings show

Hedge funds Citadel and DE Shaw slashed their holdings in Nvidia ahead of this month’s stock market rout while Renaissance and Marshall Wace added to their positions, in a sign of sharp divisions among managers over the outlook for the chipmaking giant. Citadel, the most successful hedge fund of all time, ditched about 500,000 shares in the second quarter of this year to take its holding to $19mn at the end of June, down from $60mn at the end of March, according to US regulatory filings.

It is unclear when and at what price funds traded Nvidia shares, and whether they had changed their positions by the time of the August sell-off. The Financial Times analysed SEC filings from 23 big hedge funds holding a total of $1.4tn in US equities. On average they sold off about 6 per cent of their holdings in Nvidia, filings showed. Man Group and Two Sigma collectively picked up 600,000 more Nvidia shares by the end of June.

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