An institutional investor is a legal entity that pools money from multiple investors to invest in various assets and securities. These are very big investors that make investments on behalf of someone else. Since institutional investors are responsible for massive amounts of money, they are generally more risk-averse. So, if they get any hint that the market (or any stock) is starting to trend downward, they are more likely to dump risky assets. Such actions of institutional investors could prove an early signal for retail investors, helping them to minimize losses. Let’s take a look at the top stocks sold by institutional investors.
Top Stocks Sold By Institutional Investors
We have used the latest available 13F, 13D/13G filings since the start of Q2 2023 to develop this list of the top stocks sold by institutional investors. Here are the top stocks sold by institutional investors:
10. Exxon Mobil ($16.23 billion)
With a total value sold of more than $16 billion, Exxon Mobil Corp (NYSE:XOM) is the tenth most sold stock by institutional investors since the start of Q2 this year. The top three institutional investors that have sold Exxon Mobil shares are: Norges Bank – $5.21 billion, GQG Partners LLC – $1.47 billion, and BlackRock – $1.45 billion.
Exxon Mobil stock is down over 7% in the last three months. Several Wall Street analysts believe the stock’s impressive multiyear run may be losing steam. Also, lower-than-expected manufacturing data from China added to oil demand concerns, pushing the stock further down.
9. Tesla ($18.14 billion)
With a total value sold of more than $18 billion, Tesla Inc (NASDAQ:TSLA) is the ninth most sold stock by institutional investors since the start of Q2 this year. The top three institutional investors that have sold Tesla shares are: Norges Bank – $4.64 billion, Susquehanna International Group Llp – $1.54 billion, and Citadel Advisors – $1.17 billion.
Tesla falls in this list despite it being up more than 120% YTD. The company recently reported stronger-than-expected second quarter deliveries and production numbers. Some analysts, however, have raised concerns over the company’s long-term prospects as more traditional automakers, such as Ford and General Motors, have ramped up their EV output.
8. NVIDIA ($18.59 billion)
NVIDIA Corp (NASDAQ:NVDA) stock is up almost 190% this year, but despite this, it falls in the list of the top stocks sold by institutional investors. The top three institutional investors that have sold NVIDIA shares are: Norges Bank – $5.66 billion, State Street – $1.31 billion, and Edgewood Management Llc – $713.5 million.
NVIDIA shares recently came under pressure after the WSJ reported that the U.S. government is considering putting restrictions on the export of chips and other critical technologies to China. Most analysts, however, believe that such restrictions would have minimal to no impact on NVIDIA.
7. UnitedHealth Group ($21.92 billion)
UnitedHealth Group Inc (NYSE:UNH) shares are down almost 10% this year. The stock witnessed a significant decline after the company reported last month that it is seeing a rise in surgeries. A rise in surgeries would mean an increase in cost for the company. UnitedHealth expects a jump of 1 percentage point in its medical loss ratio (MLR) because of the big increase in surgeries.
The top three institutional investors that have sold UnitedHealth Group shares are: Norges Bank – $4.93 billion, FMR LLC – $1.46 billion, and JPMorgan Chase & Co – $1.31 billion.
6. Meta Platforms ($26.27 billion)
Meta Platforms Inc (NASDAQ:META) shares are up over 130% this year as investors and analysts laud the company’s AI strategies, as well as its efforts to cut costs and boost profitability. However, the company’s metaverse strategy is still in doubt.
Late last month, the company launched its new VR subscription service, but it failed to excite investors as it shares dropped that day. The top three institutional investors that have sold Meta Platforms shares are: Norges Bank – $5.83 billion, Amundi – $1.01 billion, and Flossbach Von Storch Ag – $754 million.
5. Alphabet ($27.18 billion)
Alphabet Inc (NASDAQ:GOOG) shares may be up over 30% this year, but many analysts have raised concerns over the company’s near-term prospects. Bernstein and UBS analysts recently downgraded Alphabet stock over AI-related risks to Google’s Search business.
Also, Google is facing rising competition from Meta and Amazon in the digital advertising space. The top three institutional investors that have sold Alphabet shares are: Norges Bank – $9.07 billion, TCI Fund Management – $1.53 billion, and FMR LLC – $1.43 billion.
4. Berkshire Hathaway ($27.9 billion)
Berkshire Hathaway Inc (NYSE:BRK.A) stock has gained almost 11% this year, but despite this, it is the fourth most sold stock by institutional investors since the start of the Q2 this year. The top three institutional investors that have sold Berkshire Hathaway shares are: Perigon Wealth Management LLC – $16.55 billion, CI Private Wealth LLC – $5.45 billion, and Norges Bank – $2.76 billion.
Berkshire Hathaway isn’t facing any real headwind, but its greatest challenge is its post-Buffett future. The company is synonymous with its CEO, who has led it for nearly 60 years.
3. Amazon ($31.78 billion)
Amazon.com, Inc. (NASDAQ:AMZN) stock has gained more than 50% this year, but despite this, it is the third most sold stock by institutional investors since the start of Q2 this year. The top three institutional investors that have sold Amazon shares are: Norges Bank – $9.21 billion, Price T Rowe Associates Inc Md – $2.74 billion, and FMR LLC – $1.94 billion.
Although there are no clear reasons why these investors are selling the stock, many believe that Amazon’s AWS segment is experiencing a significant headwind due to rising competition.
2. Microsoft ($58.56 billion)
Microsoft Corp (NASDAQ:MSFT) stock has gained almost 41% this year, but despite this, it is the second most stock sold by institutional investors since the start of Q2 this year. The top three institutional investors that have sold Microsoft shares are: Norges Bank – $22.79 billion, Barclays Plc – $1.88 billion, and TCI Fund Management – $1.84 billion.
Microsoft stock recently suffered a small setback following a report that EU regulators are investigating the company. In the past, Microsoft has tried to suppress antitrust scrutiny, but those efforts fell short, according to Reuters. Previously, the company has been penalized 2.2 billion euros ($2.4 billion) for breaching EU competition rules.
1. Apple ($61.75 billion)
Apple Inc (NASDAQ:AAPL) stock has gained significantly this year after macroeconomic headwinds pushed the shares down 27% in 2022. Despite this, it is the top stock sold by institutional investors since the start of Q2 this year.
The top three institutional investors that have sold Apple shares are: Norges Bank – $24.67 billion, New England Asset Management – $3.01 billion, and Cresset Asset Management LLC – $2.33 billion.
UBS analyst David Vogt recently downgraded Apple stock, citing “persistent softness in developed markets and data that indicates growth is likely to remain under pressure.”
FAQ
What do most hedge funds and other institutions trade?
A hedge fund can invest in stocks, real estate, currencies, derivatives and even crypto. However, they often trade financial derivative contracts, such as options, forwards and futures, to minimize their risks.
What is hedging, in simple terms?
Hedging, in simple terms, is a risk management strategy that allows investors to reduce the risk of losing an existing position. It involves buying or selling an investment or hedging one investment by making a trade in another to reduce the risk in an open position.
What are the three most common hedging strategies?
Portfolio construction, options and volatility indicators are the three most popular hedging strategies to reduce market risk.
What is risky about a hedge fund?
Hedge funds often resort to complex strategies that involve higher risk levels when compared to traditional investments. Also, limited liquidity is another risk of investing in a hedge fund. It means that investors may not get their money on short notice easily.
This article originally appeared on ValueWalk
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