From Bitcoin to Beijing: Where the smart money flowed last quarter

We’re back with Smart Money, your guide to the biggest and boldest moves from top investors in Q4 2024. Buffett is backing pizza, institutional demand for Bitcoin is rising and some of the world’s most renowned investors are making moves on China. Let's take a look at some notable trades by prominent investors. 

Buffett’s secret sauce 

To sum up Buffett’s Q4 moves simply, he bought pizza and beer and sold off financials. Buffett increased his stake in Domino’s Pizza (DPZ:US), which is up around 10% year-to-date. Constellation Brands (STZ:US) was his only new buy, though a relatively small one, making up just 0.47% of the portfolio. Constellation owns a portfolio of beer, wine and spirits brands, including Corona. Since the end of Q4, Constellation has dropped around 25% after reporting weak Q4 results.  

Buffett also increased his positions in SiriusXM (SIRI:US) and Occidental (OXY:US) this quarter, having added to these holdings in multiple previous quarters throughout 2023 and 2024. On the other hand, Buffett cut back on financial stocks, trimming positions in Bank of America (BAC:US), Capital One Financial (COF:US), Citigroup (C:US) and NU Holdings (NU:US). Bank of America was reduced by 14.72% to 1.93% of the portfolio. Citigroup saw one of Buffett’s biggest sell-downs of the quarter in percentage terms, with a 73.5% reduction, bringing its weighting down to 1.08% of the portfolio. 

Bitcoin buying spree 

Last quarter, several major funds increased their exposure to Bitcoin (BTC/USD). Tudor Investment Holdings boosted its position in BlackRock’s iShares Bitcoin Trust ETF (IBIT:US) by 81.76%, bringing its total holdings to $426.98 million (4.53% of its portfolio), making IBIT its largest position. Founder Paul Tudor Jones has long voiced concerns about the US debt trajectory, stating in October: "I think all roads lead to inflation. I'm long gold, I’m long Bitcoin, I’m long commodities." 

Another significant IBIT purchase came from Mubadala Investments, one of Abu Dhabi’s sovereign wealth funds. A recent 13F SEC filing revealed that the fund acquired $436.9 million in IBIT last quarter. While the nominal amount is substantial, the investment represents just 0.14% of Mubadala’s $302 billion in holdings. 

Howard Lutnick, a prominent Bitcoin advocate and CEO of Cantor Fitzgerald, has been a major buyer in the Bitcoin investment trend. Last quarter, Cantor Fitzgerald added a new $1.04 billion position in MicroStrategy (MSTR:US), making it the firm’s largest holding at 39.23% of its portfolio. The firm also increased its IBIT stake by 221% to $86.8 million. Notably, Lutnick is also Trump’s Commerce Secretary and has been chosen to help establish a U.S. sovereign wealth fund alongside Treasury Secretary Scott Bessent.  

Commerce Secretary and Bitcoin advocate Howard Lutnick joins President Trump for the signing of a reciprocal tariffs order on February 13, 2025. 

Ackman banks on experiences 

In Q4, Ackman increased his existing stakes in Seaport Entertainment Group (SEG:US), Nike (NKE:US), and Brookfield (BN:US). He first invested in Nike and Brookfield in Q2 2024, adding to them again in Q3 and now in Q4. Seaport Entertainment Group, which he first purchased in Q3, also saw additional investment this quarter. Meanwhile, he reduced his stakes in Chipotle and Hilton. 

Seaport Entertainment Group is a small entertainment and hospitality company specialising in immersive, real estate-driven experiences. By integrating dining, entertainment, sports, retail and hospitality, SEG transforms spaces into dynamic destinations that redefine traditional entertainment. Its assets include the Las Vegas Ballpark and The Seaport in New York. 

In Pershing Square’s Q2 investor letter, Bill Ackman highlighted SEG’s potential, stating, "Under the leadership of CEO Anton Nikodemus, former President and COO of MGM CityCenter and an entertainment industry veteran with over 30 years of experience, we are optimistic that SEG will unlock the significant embedded upside potential in its unique collection of assets." 

China delivers for contrarian bulls 

Michael Burry dialled back his China trade last quarter while still maintaining a significant position. In recent quarters, he has stood out as one of the few hedge fund investors with a bullish view on Chinese stocks. In particular, he reduced his stake in Alibaba (9988:HK) by 25% and JD.com (JD:US) by 40%. Burry’s decision to reduce his exposure preceded a notable rebound in Chinese technology stocks, which surged in early 2025 amid renewed investor interest following the DeepSeek event. 

Since the DeepSeek selloff on 27 January, Alibaba has surged by approximately 45%, and Tencent has risen by nearly 30%. On 5 February, Deutsche Bank published a report titled “China Eats the World”, stating, “We think 2025 is the year the investing world realises China is outcompeting the rest of the world.” The report presents a bullish outlook for China, highlighting strong economic fundamentals, innovation, and global competitiveness in key industries. It also downplays concerns over China’s declining population, noting its leadership in automation and the vast consumer markets it can tap into across Central Asia, West Asia, the Middle East, and North Africa, supported by its Belt and Road Initiative. On the other hand, geopolitical risks, regulatory uncertainty, and structural economic challenges remain potential headwinds for China’s long-term growth. 

A visitor interacts with a Go-playing robot at the 2024 Global AI Expo in Suzhou on December 10, 2024. 

While Burry was reducing China exposure before DeepSeek, others were increasing their positions ahead of the rally. David Tepper of Appaloosa Management raised his Alibaba stake by 18.43% in Q4, making it 15.54% of his portfolio and his top holding. He also increased his stake in Pinduoduo (PDD:US) by 1.04%, now 8% of the fund, and JD.com by 43%, now 5.61% of the fund. Tepper also gained exposure to China through ETFs, notably iShares China Large Cap (FXI:US), which he increased by 13.75%, now 3.13% of the fund, and KraneShares CSI China ETF (KWEB:US), which he increased by 21.53%, now 2.07% of the fund. By the end of December, China-linked stocks and ETFs made up nearly 40% of Tepper’s portfolio. 

Superinvestors by the numbers 

For those following the strategies of top investors, DATAROMA offers valuable insights into how long-term investors allocate capital. Tracking portfolio changes from 79 ‘Superinvestors,’ including legendary names like Warren Buffett, the website highlights key investment trends shaping the market. 

Looking at the latest data from Q4 2024, certain stocks stood out as the most frequently purchased by these high-profile investors. 

^{Source: Dataroma, as at 20/2/2025}

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Sources: 

https://hedgefollow.com/ 

https://www.dataroma.com/m/home.php 

https://www.msn.com/en-us/money/news/us-commerce-secretary-howard-lutnick-s-cantor-fitzgerald-increases-bitcoin-exposure-via-etfs-mstr-mara-adds-chinese-firms-like-baba-baidu-jd-in-q4/ar-AA1zmB62 

https://www.pionline.com/sovereign-wealth-funds/mubadala-puts-437-million-work-bitcoin-etf 

https://blockchain.news/flashnews/paul-tudor-jones-firm-doubles-investment-in-blackrock-bitcoin-etf