These 5 hedge funds may have gotten hit the hardest by Nvidia's plunging stock


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 $US2.2 billion, plus or minus 2%. Previously, it expected revenue of $US2.7 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 $US202 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

Per cent of Nvidia outstanding: 0.18%

Potential loss: $US24.6 million

Source: Bloomberg


AQR Capital Management

Position: 1,554,254 shares

Per cent of Nvidia outstanding: 0.25%

Potential loss: $US34.4 million

Source: Bloomberg


Renaissance Technologies

Nvidia

Position: 2,091,465 shares

Per cent of Nvidia outstanding: 0.34%

Potential loss: $US46.3 million

Source: Bloomberg


DE Shaw

Spencer Platt/Getty

Position: 2,150,055 shares

Per cent of Nvidia outstanding: 0.37%

Potential loss: $US47.6 million

Source: Bloomberg


Lone Pine Capital

Drew Angerer/Getty Images

Position: 2,235,268 shares

Per cent of Nvidia outstanding: 0.37%

Potential loss: $US49.5 million

Source: Bloomberg


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