These 5 hedge funds may have gotten hit the hardest by Nvidia's plunging stock (NVDA)
- Nvidia on Monday slashed its fourth-quarter revenue guidance, and sounded the alarm on its sales in China.
- Shares plunged nearly 14% on the news.
- Nvidia's plunging stock could have caused the company's five biggest hedge-fund investors to lose $202 million in total.
- Watch Nvidia trade live.
Nvidia plunged 14% Monday after the chipmaker slashed its fourth-quarter revenue guidance, citing significantly weaker economic conditions in China. Five hedge funds could have lost hundreds of millions of dollars as a result of the warning.
"Q4 was an extraordinary, unusually turbulent, and disappointing quarter," Jensen Huang, Nvidia founder and CEO, said in a filing with the Securities and Exchange Commission.
"As we worked through Q4, the global economy decelerated sharply, particularly in China, affecting consumer demand for NVIDIA gaming GPUs. Also, with initial shipments of new high-end RTX GPUs selling above MSRP, some customers may have delayed their purchase while waiting for lower price points and further demonstrations of RTX technology in actual games."
The chipmaker cut its revenue guidance to $2.2 billion, plus or minus 2%. Previously, it expected revenue of $2.7 billion, plus or minus 2%.
And some of Nvidia's biggest shareholders, famous names in the hedge fund industry, could be paying the price. By Markets Insider's calculation, Nvidia's plunge on Tuesday could have caused the five biggest hedge-fund investors to lose $202 million in total.
To clarify, the firms could have sold their shares before Monday, avoiding some or all of the decline. Additionally, they could have hedged their positions, offsetting any losses.
Below are five hedge funds that own the largest positions in Nvidia, according to their most recent filings:
Coatue Management
Position: 1,110,330 shares
Percent of Nvidia outstanding: 0.18%
Potential loss: $24.6 million
Source: Bloomberg
AQR Capital Management
Position: 1,554,254 shares
Percent of Nvidia outstanding: 0.25%
Potential loss: $34.4 million
AQR did not immediately respond to request for comment.
Source: Bloomberg
Renaissance Technologies
Position: 2,091,465 shares
Percent of Nvidia outstanding: 0.34%
Potential loss: $46.3 million
Renaissance did not immediately respond to request for comment.
Source: Bloomberg
See the rest of the story at Business Insider
Contributer : Tech Insider https://read.bi/2RjBhpb
No comments:
Post a Comment