Soros Fund Management and Appaloosa Management increased their holdings in Nvidia during the second quarter. Soros Fund acquired 932,539 Nvidia shares, raising its total by over 1,600% to 990,292 shares.
Appaloosa Management added 1.45 million Nvidia shares, an increase of 483%, bringing its total to 1.75 million shares. Both funds also heightened their investments in UnitedHealth Group, a health insurer facing challenges, which saw an 8.2% increase in after-hours trading.
Nvidia’s shares declined by 0.2% in after-hours trading on Thursday but have risen by 35.5% for the year. Meanwhile, UnitedHealth Group’s shares remain down by 46.3% year-to-date despite recent gains.
Looking back at the Q2 2024 filings, we can see how major funds positioned themselves for the AI boom by loading up on Nvidia. Those moves from over a year ago showed a strong conviction that is still relevant for us today. The key is to adapt that long-term thesis to the current market conditions.
As of today, August 14, 2025, Nvidia has continued its run and is now up an additional 52% year-to-date, though volatility has increased significantly in recent weeks. The latest U.S. Producer Price Index (PPI) data released this morning showed a slight uptick in inflation, creating uncertainty around the Federal Reserve’s next move. For traders holding Nvidia, we see this as a moment to sell covered calls to generate income from the elevated premiums while holding the core position.
Historically, we have seen that tech leaders like Nvidia often experience sharp, short-term pullbacks even in a strong uptrend, such as the 15% correction we saw in the spring of 2024. Given the current macroeconomic uncertainty, buying protective puts with a one-month expiry could be a cost-effective way to hedge against a similar dip. This allows us to maintain exposure to the AI trend that Soros and Appaloosa identified early.
The funds’ 2024 bet on a beaten-down UnitedHealth also provides a valuable lesson. The stock has since recovered over 30% from its lows as regulatory fears from last year have eased and medical cost trends have stabilized, which was confirmed in their Q2 2025 earnings call last month. For us, this signals that the recovery phase may be maturing.
With UnitedHealth now trading in a more stable range, we think it is prudent to use collar strategies. This involves buying a protective put and selling a covered call simultaneously, which protects our downside while capping potential upside. This strategy allows us to lock in the significant gains made since last year while minimizing the cost of the hedge.
