Wall Street hedge funds ease off the Magnificent Seven in third-quarter reshuffle

Wall Street’s biggest hedge funds dumped chunks of their “Magnificent Seven” tech holdings during the third quarter of 2025, cutting down positions in Nvidia, Amazon, Alphabet, and Meta as shown in new regulatory filings published Friday.

The pullback came just as markets were gaining steam, with the S&P 500 up nearly 8% and the Nasdaq 100 climbing around 9%, fueled in part by falling bond yields after expectations of rate cuts pushed 10-year Treasury yields down about seven basis points.

The data came from mandatory 13‑F filings, and the reports tracked investment changes through September 30.

The latest trades showed how aggressive some of the largest money managers were in reducing risk in Big Tech. It wasn’t just the names people watch on CNBC every day, hedge funds also trimmed bets in healthcare and energy names.

That move followed a second quarter that saw firms piling into artificial intelligence plays. But once the AI frenzy cooled, and inflated valuations began dropping, managers pulled back hard and redirected capital into sectors like application software, e‑commerce, and payments.

Bridgewater dumps Nvidia, loads up on payments before Fiserv tanks

Ray Dalio’s Bridgewater Associates, which outperformed many peers during the first nine months of 2025, chopped its Nvidia stake by nearly two-thirds, ending Q3 with 2.5 million shares, and halved its position in Alphabet, now down to 2.65 million shares.

At the same time, Bridgewater raised stakes in Adobe, Dynatrace, and Etsy, all tied to software and online platforms, and increased its holding in payments firm Fiserv before it reported weak earnings and slashed revenue guidance for the second quarter in a row. The result? Fiserv’s market cap cratered by about $30 billion in one day.

Discovery Capital, founded by Rob Citrone, entered the same Fiserv trade before the nosedive, and also opened fresh positions in Alphabet, Cigna, Elevance Health, and Cleveland-Cliffs, a steel company.

Meanwhile, Lone Pine Capital cut its Meta stake by 34.8%, while Tiger Global did it even harder, slashing 62.6% of its holding in the same company.

Coatue and Balyasny shuffle AI and iPhone bets, Buffett tweaks Alphabet and Apple

Philippe Laffont’s Coatue Management dialed down its Nvidia exposure by 14.1%, dropping the position to 9.9 million shares, still big, but no longer as aggressive.

Coatue’s reduction lined up with similar moves from Bridgewater and Michael Burry’s Scion Asset Management, who also backed away from Nvidia during the quarter.

Dmitry Balyasny’s Balyasny Asset Management went the other way on Apple, multiplying its holding several times over during the same quarter.

And over at Berkshire Hathaway, Warren Buffett’s team reported a brand-new $4.3 billion stake in Alphabet, even as it continued to trim down its Apple position. This was the last equity portfolio disclosure before Buffett hands over CEO duties.

These trades didn’t say anything about short positions or current holdings, 13‑Fs never do, but they painted a clear picture of where money was being moved and when. The filings showed a lot more than just portfolio tinkering.

The biggest hedge funds on Wall Street were stepping away from the most hyped tech names of the year and diving into new sectors.

Every one of these decisions came with real numbers, real stakes, and real consequences, and by the end of the third quarter, the tech party had fewer guests.