Some of the largest US hedge funds, including Bridgewater, Tiger Global and Lone Pine, pared back positions in the so-called “Magnificent Seven” during the third quarter, while others upped their holdings or opened new positions, according to a report by Reuters.

Te report cites newly released 13F filings as showing some fund trimmed stakes in Nvidia, Amazon, Alphabet and Meta.

The shift marks a reversal from Q2, when managers had ramped up exposure to mega-cap tech stocks amid an AI-fuelled valuation surge. With those valuations easing, managers rebalanced into application software, e-commerce and payments, while also cutting exposure to healthcare and energy.

Bridgewater reduced its Nvidia stake by nearly two-thirds and halved its holding in Alphabet, while also adding to positions in Adobe, Dynatrace and Etsy. The fund also increased its exposure to payments company Fiserv, a name that Discovery Capital also initiated before the firm issued weaker revenue guidance.

Tiger Global and Lone Pine Capital made steep reductions to Meta, cutting their positions by 62.6% and 34.8% respectively. Coatue Management trimmed Nvidia by 14%, joining Bridgewater and Michael Burry’s Scion Asset Management in reducing exposure to the chipmaker.

Elsewhere, Discovery Capital took new positions in Alphabet, Cleveland-Cliffs, Cigna and Elevance Health, while Balyasny Asset Management significantly increased its stake in Apple.

Berkshire Hathaway disclosed a $4.3bn Alphabet stake and further reduced its holding in Apple in what will be the final portfolio update before a CEO transition.