What hedge funds bought in Q2: From hyperscalers to turnaround plays

Time to check in on where the heavy hitters placed their bets last quarter. Which trades stood out? What themes dominated? And who made the most aggressive plays?

In Q2, hedge funds got busy. They loaded up on AI leaders, doubled down on discounted names, and found a few new stories worth backing. Let’s take a closer look under the hood.

Big money pours into AI

In the second quarter, major hedge funds ramped up their bets on artificial intelligence, concentrating capital in hyperscalers (massive cloud infrastructure providers such as Amazon [AMZN:US], Microsoft [MSFT:US], and Alphabet [GOOG:US]) and Nvidia [NVDA:US], the dominant chipmaker powering the AI boom. Nvidia shares surged from a low of $96 to around $175 by the end of the quarter. For funds that built positions early in the quarter, the payoff has been significant.

Bridgewater Associates, the fund founded by Ray Dalio, increased its stakes in Nvidia by 154%, Alphabet by 84%, and Microsoft by 112%. Each of these positions is now worth roughly $1 billion, accounting for around 3% to 5% of the fund’s total portfolio. Dalio officially sold his last remaining stake in Bridgewater and stepped down from its board in August. While he is no longer involved day to day, the fund’s investing style still reflects his philosophy, with his core principles continuing to anchor the firm.

Citadel Advisors, led by Ken Griffin, moved even more aggressively. The firm raised its Nvidia stake by 414%, Amazon by 158%, and Microsoft by a staggering 1,636%. Like Bridgewater, Citadel's holdings in each of these names are now valued at around $1 billion.

Renaissance Technologies, the elite quant fund founded by Jim Simons, also made bold adjustments. It increased its Nvidia position by 548%, bringing the total value to approximately $1.2 billion. On the other hand, Renaissance trimmed its largest position, a $1.8 billion stake in Palantir. With an average entry price of $14.62 and a gain of roughly 1,000%, the fund appears to be locking in some well-earned profits.

Burry starts fresh

In Q2, Michael Burry was back to doing what he does best: tearing up his playbook and starting over. After selling nearly his entire portfolio in Q1, keeping only Estée Lauder, Burry reloaded with five new positions worth more than $45 million combined.

Michael Burry’s Scion Asset Management added several new names to the portfolio this quarter, including Lululemon [LULU:US], Bruker Corp [BRKR:US], Regeneron Pharmaceuticals [REGN:US], MercadoLibre [MELI:US], and UnitedHealth [UNH:US]. At first glance, there’s no obvious thread connecting these companies. But look closer at the charts. With the exception of MercadoLibre, each has been hammered over the past year. That tells us something. Burry is bargain-hunting again.

Burry was not the only investor to step into the UnitedHealth dip-buying trade, a move we unpacked in a recent analysis. The stock was firmly in the sights of other heavyweight investors. It was the most heavily bought name among value-focused managers tracked on Dataroma in Q2. David Tepper’s Appaloosa Management boosted its stake in the troubled insurer by 1,300%, while Warren Buffett’s Berkshire Hathaway opened a new $1.5 billion position in the company.

Buffett skips the hype

Buffett had an interesting quarter, adding to his signature mix of steady, cash-generating businesses. He opened new positions in Lamar Advertising [LAMR:US] and Allegion [ALLE:US], both strong operators in unflashy but essential sectors.

Lamar owns over 360,000 billboard and transit ad displays across the US and Canada, including 5,000-plus digital billboards. As a REIT, it earns by renting ad space and holds a dominant market position. But it carries $3.34 billion in debt, which could weigh on it in a downturn.

Allegion makes locks, door systems, and smart security products under brands like Schlage and Von Duprin. It brings in $3.8 billion in annual revenue and is expanding globally and into smart-home tech. Construction cycles and material costs are risks, but its products are essential and its financials solid.

Buffett also scaled up two existing bets. He increased his stake in Lennar [LEN:US] by 265%. Lennar, with $35.4 billion in revenue and $3.9 billion in profit, is one of the largest US homebuilders and runs a vertically integrated model across construction, financing, and rentals. He also upped his holding in Pool Corp [POOL:US] by 136%. The company, valued at over $11 billion, distributes pool and outdoor living products to more than 120,000 wholesale customers. Recent quarterly revenue hit $1.78 billion with $194 million in net income, both up 1% year over year.

So what ties all this together? Outdoor advertising, home security, residential construction, backyard leisure. It’s vintage Buffett. These are not bets on disruption or short-term trends. They are investments in businesses that provide things people will likely keep needing, regardless of economic shifts. Durable cash flows, dominant positions, and simple models that just keep working. In other words, classic long-haul Buffett.

What the smart money bought last quarter

Quarterly buying totals from DATAROMA, which tracks 79 value-focused investors, show concentrated buying in big tech during Q2 2025.

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