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Five funds with big overweight stakes in Nvidia

FSA highlights five actively managed funds with large overweight stakes in Nvidia.
Santa Clara, CA, USA – March 18, 2014: The Nvidia World Headquarters located in Santa Clara. Nvidia is an American global technology company which specializes in the manufacture of graphics processing units.

Funds managed by GQG, Baillie Gifford and Natixis Loomis Sayles have the biggest overweight positions in Nvidia shares, which has been driving strong performance during the past year.

The semiconductor stock has rallied 255% from the start of January 2023 and almost 500% from its 2022 lows after demand for its GPUs skyrocketed on the back of increased investments into artificial intelligence (AI).

After having surpassed the $1trn valuation mark in early 2023 the stock has continued to rise and has now become a major constituent in many major indices that fund managers track.

It now makes up roughly 2.86% of the MSCI World index, 4.25% of the S&P 500 index and 6.77% of the Russell 1000 Growth index.

Some funds have been materially overweight the stock even at year-end after a 215% rally over the course of 2023 and another 41% year-to-date.

Below, FSA highlights five actively managed funds available for distribution in Hong Kong and Singapore that have large overweight positions* invested in Nvidia relative to their benchmarks.

GQG – Partners Global Equity

This $2.5bn fund has an 8.5% allocation to Nvidia, more than triple the size of the 2.58% weighting from its benchmark MSCI ACWI index.

The fund is managed by Florida-based GQG’s founder and chief investment officer Rajiv Jain, who meaningfully increased the firm’s position in the chipmaker in the first quarter of 2023.

The strategy has a concentrated approach, where the top-10 holdings make up over half of the fund (54.5%). The portfolio’s two largest positions after Nvidia are in Meta and Novo Nordisk at 7.9% and 6.3% respectively.

Baillie Gifford – Worldwide Long Term Global Growth

This $2.6bn fund has 7.7% allocated to Nvidia, also well-above the 2.58% weighting from its benchmark MSCI ACWI index.

According to 13F filings, the Scottish-based firm meaningfully boosted its stake in Nvidia in the fourth quarter of 2022. However, the firm has been an early investor in the chipmaker, with initial investments having been made in 2016.

The strategy is managed by Mark Urquhart, John MacDougall, Gemma Barkhuizen and Michael Pye, who also run a concentrated approach.

Its top-10 holdings account for 47% of the fund, where its next largest holdings after Nvidia are in Amazon and PDD Holdings, at 6.46% and 5.65% respectively.

Natixis – Loomis Sayles US Growth Equity

This $3.2bn fund has 7.9% invested in Nvidia, versus its benchmark S&P 500 index weight of 4.25%.

The strategy is run by growth-orientated manager Aziz Hamzaogullari, who started buying Nvidia in the first quarter of 2019 during a substantial sell-off in the stock after the 2018 crypto-boom and bust.

Its next largest holding is Meta, where it has a 7.8% position and Google-parent company Alphabet with a 6% position. Both also form notable overweight holdings relative to its S&P 500 benchmark.

Franklin Innovation

This $428m fund has 10.08% invested in Nvidia, the largest in the list and well-above the 6.77% allocation of its benchmark Russell 1000 Growth index.

The fund is managed by Matthew Moberg, who also manages the Franklin Focused Growth fund – a concentrated strategy focused on growth equities.

The portfolio’s next largest position size after Nvidia is Microsoft, where 7.92% is allocated. However not all its top-10 positions are as concentrated as its largest few. Its 10th largest allocation is invested into Intuit, with just a 2.81% weighting.

Nomura American Century US Focused Innovation Equity

This $101m fund has 9.95% allocated to Nvidia compared with its benchmark USA Growth Index weight of 7%.

The fund is run by Keith Lee, Michael Li and Henry He. The strategy is focused on investing in companies capable of sustaining high growth rates.

Other holdings in its top-10 include tech giants Amazon, Alphabet and Tesla, as well as non-tech giants such as Intuitive Surgical and Chipotle Mexican Grill.

Despite the above funds having large stakes in Nvidia relative to their respective benchmarks, Nvidia makes up a much bigger weighting for certain exchange-traded-funds (ETFs) tracking various technology indices.

Below are 10 index funds with the largest absolute percentage stakes in Nvidia, according to data compiled from FE fundinfo*.

FundNvidia position (%)
Amundi – S&P Global Information Technology ESG UCITS ETF  15.40
iShares – S&P 500 Information Technology Sector UCITS ETF14.03
CSIF (IE) – MSCI USA Tech 125 ESG Universal Blue UCITS ETF13.81
Invesco – Technology S&P US Select Sector UCITS ETF13.08
Xtrackers – MSCI USA Information Technology UCITS ETF12.57
Lyxor – MSCI Future Mobility ESG Filtered (DR) UCITS ETF11.61
VanEck – Semiconductor UCITS ETF11.38
Xtrackers – MSCI World Information Technology UCITS ETF10.80
SSGA – SPDR MSCI World Technology UCITS ETF10.67
Amundi – MSCI World Information Technology10.56

* Position sizes were based on data from 31 January 2024 unless stated otherwise. Only funds available to Singapore and/or Hong Kong investors as classified by FE fundinfo were included. This is not an exhaustive list of all strategies with overweight positions in Nvidia.

Part of the Mark Allen Group.