As global markets hit new highs last quarter on the back of AI-driven optimism, several billionaire-backed family offices quietly moved into battered stocks, according to third-quarter filings reviewed by CNBC.
David Tepper’s Appaloosa made some of the most notable shifts. The firm exited its full Oracle position during a period in which the stock surged nearly 29%. It also took profits in the “Magnificent Seven,” selling out of Intel and trimming Meta by 8%. At the same time, Appaloosa rotated into consumer names that have been hit hard by tariffs and slowing demand. The family office increased its Whirlpool stake by roughly 2,000%, making it Tepper’s third-largest position at quarter-end, valued at $432 million. Whirlpool shares have dropped almost 31% in the second half of the year. Appaloosa also added to Goodyear Tire & Rubber, down 13% year-to-date.
Carl Icahn’s family office made a similar contrarian move, boosting its investment in International Flavors & Fragrances by 27% to $292 million. The stock, which supplies ingredients for food, fragrances and personal-care products, has fallen 23% this year. Icahn began building the stake in 2022, and his son Brett joined the company’s board in October as part of an earlier agreement.
Leon Cooperman’s Omega Advisors leaned into health insurers, expanding its Cigna position by 53% and raising its holdings in Elevance Health by 21%. At quarter-end, Elevance ranked as Omega’s eighth-largest holding at $110.2 million. Both companies’ shares have slid around 18% in the second half of the year amid rising medical costs and expected cuts to federal healthcare funding.
Despite these value-driven bets, some family offices continued to ride the momentum of Big Tech. Soros Fund Management dramatically increased its stakes in Apple and Amazon—up 2,000% and 481%, respectively—making Amazon its largest holding at $489 million. Stanley Druckenmiller’s Duquesne Family Office re-entered both Amazon and Meta after selling out the previous quarter, establishing new positions worth $96 million and $56 million.
And even as Appaloosa pared back several tech names, it still lifted its Nvidia stake by 9% over the quarter.
