Over Half of Billionaire Chase Coleman's Portfolio Is Invested in 7 Brilliant Artificial Intelligence (AI) Stocks

Taking a look at what billionaire investors own is a smart idea for individual investors. Hedge funds have far more research capabilities than individual investors do, and seeing what their portfolios hold is a great way to generate ideas for which stocks are best to own. Many of these firms don't own fly-by-night companies; instead, they stick to the big names that nearly everyone recognizes.

The key is to find hedge funds that have a long-term investing mindset. One billionaire-run hedge fund I follow is Chase Coleman's Tiger Global Management. He has more than half of its portfolio invested in seven genius artificial intelligence (AI) stocks, and I think investors should take a look at his fund for guidance on where to invest their money.

Image source: Getty Images.

What stocks does Coleman own?

This information may be fresh to investors, but it's still a bit dated. The only way we know what hedge funds like Tiger Global Management own is due to a Securities and Exchange Commission rule that requires all firms with $100 million or more in investments to disclose their end-of-quarter holdings. That information is made available to individual investors 45 days after the quarter closes. So, the information investors received on May 15 regarding Coleman's holdings was actually from March 31. However, when a fund has a long-term mindset, it's a lot easier to follow what it's doing, as it isn't trading in and out of positions each quarter.

At the end of the first quarter, Coleman's portfolio owned 54 stocks, but seven of them made up the majority of his holdings:

Data source: Hedge Follow.

Added together, that's about 56% of the fund's total assets invested in just seven companies. I would consider all of these stocks strong AI picks, and it mirrors my personal holdings as well.

It's also useful to know which positions he added to during Q1, and there were several moves that he made in the period that investors should take note of.

Coleman was a major buyer during Q1

Of his top seven holdings, there was only one stock Coleman did nothing with during Q1: Alphabet. No trades were performed on this stock in Q1, so it's safe to say he's comfortable with this being the portfolio's No. 1 holding. Tiger Global Management marginally added some Nvidia and Meta Platforms shares, increasing its positions by 9% and 12%, respectively, during Q1.

The major moves came in the Broadcom and Taiwan Semiconductor positions. Coleman increased the fund's stake in these two by 25% and 49%, respectively. Those are some major moves, and I think they point to a bullish outlook on overall AI demand as well as rising interest in custom AI chips from Broadcom.

Coleman also did some selling, with the firm unloading a tiny sliver of its shares of Amazon in the quarter (the position decreased 0.1%). However, it slashed its Microsoft holdings by 54% in Q1. That's a major move, as it used to be one of the fund's top holdings, and it should be something that investors pay attention to, as Coleman wasn't the only billionaire hedge fund manager to sell Microsoft shares during the quarter.

Overall, Coleman's portfolio is heavily leveraged to AI, but that's because that's where the growth is. I think following a model portfolio like Tiger Global's can be a smart idea, as the fund has a long history of outperforming the market.

Keithen Drury has positions in Alphabet, Amazon, Broadcom, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Amazon, Broadcom, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.