Hedge funds have recently released their second-quarter 13F holdings reports, with numerous institutions increasing their positions in tech giants such as Microsoft (MSFT.US) and Netflix (NFLX.US). During this period, despite market volatility initially triggered by Trump's trade policies, major indices still recorded significant gains.

Bloomberg's analysis of 13F filing data shows that in the three months ending June 30, hedge funds' Microsoft holdings grew by $12 billion in market value to $47 billion, representing the highest total market value holding. This growth stemmed from net buying operations and the company's soaring stock price.

Against the backdrop of artificial intelligence ushering in an era of transformative development, major Wall Street hedge funds such as Bridgewater Associates, Tiger Global Management, and Discovery Capital all increased their holdings in large-cap tech stocks during the second quarter.

This portfolio adjustment occurred as U.S. stocks experienced dramatic reversals. Although Trump's announcement of additional tariffs in early April triggered initial selling, markets quickly rebounded due to multiple extensions of policy deadlines and the resilience of the U.S. economy. By the end of June, the S&P 500 had risen approximately 25% from its April lows, posting its best quarterly performance since December 2023, while the tech-heavy Nasdaq 100 enjoyed its best performance period in over two years.

Bloomberg has currently analyzed 13F filings from 716 hedge funds with total holdings valued at $726.54 billion, compared to $622.94 billion three months earlier. Technology stocks represented the highest proportion of hedge fund holdings at 23%, followed by financial stocks at 17%. The energy sector showed the smallest investment value increase among all industries.

Additionally, hedge funds reduced their holdings in lagging stocks in aerospace & defense, consumer, and retail sectors during Q2 as part of a comprehensive return to momentum investment strategies.

Notably, as UnitedHealth Group (UNH.US) plummeted in the second quarter, multiple institutions chose to enter and "buy the dip." The stock has fallen 46% this year, with the company facing rising costs, a U.S. Department of Justice investigation, cyberattacks, and the December shooting of former executive Brian Thompson.

Billionaire investor Warren Buffett and David Tepper bought the dip during the stock's nearly 40% decline in Q2. Berkshire Hathaway under Buffett increased its UnitedHealth holdings by 5.04 million shares worth $1.57 billion in Q2.

"Wall Street's King of Bottom-Fishing" David Tepper heavily increased his position in the stock, which now represents 11.85% of his investment portfolio, a 1,300% surge in holdings compared to the previous quarter.

Michael Burry, the prototype for "The Big Short" and globally renowned hedge fund manager, also disclosed holdings in the insurance company through his Scion Asset Management. Among the top ten heavy positions, UnitedHealth call options (UNH.US, CALL) ranked first as a newly established position in the second quarter, with a market value of $190 million. Additionally, the company purchased $6 million worth of UnitedHealth individual stocks.

Other hedge funds such as Lone Pine Capital and Discovery Capital also made bets on UnitedHealth, while Soros Fund Management increased its existing positions.

Furthermore, hedge fund holdings in Alibaba (BABA.US) decreased by $1.55 billion in market value, representing the largest market value decline among all holdings.

Other significant portfolio changes include:

- Bridgewater reduced Alibaba holdings by 5.66 million shares, the largest reduction in this investment group; Coatue Management LLC reduced by 2.93 million shares.

- Arrowstreet Capital LP reduced Petroleo Brasileiro SA - Petrobras holdings by 21.2 million shares, the largest reduction in the group; Oaktree Capital reduced by 2.66 million shares.

- Bridgewater increased Microsoft holdings by 905,622 shares, the largest increase; Walleye Capital LLC increased by 882,930 shares.

- D1 Capital Partners LP increased NU Holdings (NU.US) by 14.33 million shares, the largest increase; Renaissance Technologies LLC increased by 12.21 million shares.

- 147 investors reduced or cut Meta Platforms Class A shares, the highest number of reducing investors; 177 investors increased or newly purchased Amazon (AMZN.US), the highest number of increasing investors.

- Microsoft remains the stock with the highest total market value holding at $46.83 billion.