Elliott's broader investment strategy includes hedging risks on long positions like Southwest Airlines and Pinterest by betting against major US companies. Despite its bearish stance on Nvidia, Elliott's US stock portfolio was valued at about $9 billion at the end of December, with significant stakes in companies such as Triple Flag Precious Metals and Suncor Energy. The firm's investment decisions are based on its analysis of market conditions, but the exact details of its put options, such as strike prices and maturities, remain undisclosed. Elliott has rarely disclosed positions in Nvidia, with the last known holding being 5,000 shares sold within three months in 2024.
Key takeaways:
- Elliott Management bet against Nvidia using put options, with at least $600 million in downside exposure to the chipmaker.
- The firm also held significant put options on the Invesco QQQ ETF and the SPDR S&P 500 ETF Trust, indirectly increasing its exposure to Nvidia.
- Elliott Management previously described Nvidia as being in a "bubble" and AI as "overhyped," questioning the sustainability of demand for Nvidia's graphics chips.
- Elliott's US stock portfolio was worth about $9 billion at the end of December, with major positions in Triple Flag Precious Metals, Southwest Airlines, and Suncor Energy.