Ultra-wealthy family offices bought up distressed stocks during the market rally

A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide for the high-net-worth investor and consumer. subscription To receive future issues, directly to your inbox.

Private investment firms of the wealthy bought up weak stocks in the fourth quarter of last year, as enthusiasm for artificial intelligence boosted global markets to record levels, according to third-quarter securities filings analyzed by CNBC.

Billionaire David Tepper’s family office, Appaloosa, has exited the hedge fund, exiting its entire stake in it oracle In the three months ending September 30. During that period, shares of the software giant rose nearly 29%. Last quarter, Appaloosa posted gains for Magnificent Seven shares by closing its stake in Intel And pruning it dead Holdings by 8%

Meanwhile, Appaloosa doubled its consumer stocks hit by the tariffs, increasing its stake in whirlpool By 2,000%. Appaloosa’s 5.5 million shares of the home appliance company ranked as its third-largest stake at the end of the quarter at $432 million. In the second half of the year, Whirlpool stock is down roughly 31% year to date. Tepper also increased its stake in Goodyear Tire and RubberWhich decreased by 13% this year.

Carl Icahn’s family office of the same name is also betting on a turnaround in consumer stocks, increasing his holdings of… International flavors and fragrances By 27% to $292 million. IFF, which is down 23% this year, produces ingredients for a wide range of consumer products from potato chips to deodorant. Icahn, a longtime activist investor, first built his stake in IFF in 2022, and his son Brett joined the company’s board in late October under a prior agreement between IFF and Icahn Capital.

Omega Advisors, Leon Cooperman’s hedge fund-turned-family office, has moved into health insurance stocks, boosting its stock. Cigna 53% stake to 325,000 shares. Cooperman has also expanded its position in… Elevance Health At 21%, making it Omega Advisor’s eighth-largest holding with a quarterly value of $110.2 million. Shares of Cigna and Elevance fell nearly 18% in the second half of the year, pressured by rising medical costs and expected government cuts in health care funding.

Regardless of these bold bets, family offices are still buying up some Mag 7 stocks. Soros Fund Management increased its stakes in apple and Amazon By 2000% and 481%, respectively. Amazon shares constitute the company’s largest holding with a quarterly value of $489 million.

Stanley Druckenmiller’s Duquesne family office started positions in Amazon and Meta worth $96 million and $56 million, respectively, after exiting them in the previous quarter.

Even Appaloosa, after trimming its positions at several tech giants, has raised its profile Nvidia Holdings by 9%