Quant funds bought BRK

Hedge funds snapped up Berkshire Hathaway stock in the second quarter, with DE Shaw, Renaissance Technologies and Bridgewater Associates buying millions of shares in Warren Buffett’s conglomerate.

The list of Berkshire shareholders adding to their positions during the quarter was dominated by quant funds, with some of the best-known names in the industry collectively buying shares that were worth more than $900mn at the end of June, securities filings reviewed by the Financial Times show.

These computer-driven investment groups look for specific factors or trends to guide their wagers, with some hoping to ride the momentum of a stock when it is rising and others looking for shares of companies that are less volatile than the broader market.

Berkshire meets many of the criteria for such funds and has become a favourite this year, in part because its shares are relatively inexpensive based on its earnings compared with many other companies.

Berkshire ranked among the 10 largest holdings for 22 hedge funds while 98 of the money managers tracked by Goldman disclosed a stake in the company. It stands out on a list of the most popular long bets that is otherwise dominated by technology companies such as Amazon, Microsoft, Apple and Facebook owner Meta.

https://www.ft.com/content/8b866a30-ccfb-4858-b75c-dc4c73883… (subscription required)

Watch out next quarter, when they all sell and move on to the next new trend.


It does mean much, impo.
Quant funds are long short and usually beta neutral. This could be due to Brk has low beta so they took a large long position to offset the high beta shorts they have in financials stocks.
Quants make most of the money on the short side of their book. This just means they are likely shorting high beta financials.

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Why financials, in particular?