Nvidia Day is finally here.
Wednesday night, after the stock market closes, the artificial intelligence juggernaut will report its latest-quarter earnings and — perhaps more important — guidance for the rest of the year. The results, whether better or worse than Wall Street is expecting, will have perhaps the biggest effect on the stock market moving forward than any other news.
As proof: Reuters reported that options pricing suggests traders believe Nvidia’s stock will move by about 9.8 percent on Thursday, the first trading day after the earnings report, citing data from analytics firm ORATS. If the data is right, whichever way the stock moves will have a huge impact on a number of hedge funds with big bets on Nvidia.
One of the hedge funds with the largest exposure to Nvidia is Glen Kacher’s Light Street Capital Management. At the end of the second quarter, the stock was its largest U.S.-listed long position, accounting for more than 16 percent of the U.S. common stock portfolio, according to the latest 13F filing. In the second quarter, Light Street cut its stake by 26 percent. Light Street’s long-short fund was up 40.3 percent for the year through July, and the long-only fund was up nearly 32 percent, says someone who has seen the results.
Morris Mark’s Mark Asset Management also counted Nvidia as its largest U.S.-listed long at the end of June, making up more than 14 percent of its U.S. common stock long assets, according to its latest regulatory filing. Mark reduced the position by about 10 percent in the second quarter. Its long-short fund was up 22.66 percent for the year through July, according to a hedge fund database.
And Nvidia is the largest U.S. long of Jericho Capital Asset Management, accounting for about 9.4 percent of U.S. assets, according to Jericho’s recent filing. The firm stood pat with its position in the second quarter. It was up 27 percent through July, according to an investor.
At the end of the second quarter, Nvidia was the sixth most widely held stock among hedge funds, with 296 investors, according to SEI Novus.
Elsewhere, Alex Sacerdote’s Whale Rock Capital Management counts Nvidia as its largest long, responsible for 8.5 percent of U.S. assets. However, in the second quarter, it cut its stake by about 40 percent.
In the same quarter, Nvidia became the largest long of Nehal Chopra’s Ratan Capital Management, accounting for nearly 17 percent of assets after the firm boosted its stake by about 165 percent, according to its latest 13F filing.