Lone Pine Capital sold $2.1 billion in AI-concentrated technology holdings during the first quarter, while doubling its energy sector allocation to $1.4 billion, according to 13F disclosures filed May 15. The Greenwich-based fund eliminated positions in Nvidia and Microsoft, cut Meta by 68%, and opened new stakes in ConocoPhillips and Occidental Petroleum.
The rotation reflects broader pattern across 47 major hedge funds that filed this week. Aggregate AI-adjacent equity positions fell 11.3% quarter-over-quarter, the first decline since Q2 2023, while energy allocations rose $18.7 billion industry-wide. Tiger Global reduced Alphabet by $890 million. Maverick Capital exited Palantir entirely. Coatue Management cut AI software holdings by $1.2 billion, redeploying $740 million into oilfield services and midstream infrastructure.
The timing matters because these moves predate April's semiconductor export control expansion and May's datacenter power-constraint guidance from utilities. Managers repositioned while AI stocks still traded near all-time highs. Lone Pine's Nvidia exit occurred at an average price of $878, two weeks before the stock declined 14% on datacenter capex revision. The energy entries happened as WTI crude traded below $77, before OPEC+ production discipline pushed prices toward $84 by quarter-end. Managers captured mean reversion in both directions.
Energy positioning now represents 9.2% of disclosed hedge fund equity AUM, the highest concentration since Q4 2021. Allocations skew toward integrated majors and North American E&P with sub-$45 breakevens. Lone Pine's ConocoPhillips stake values the company at 12.1x forward earnings versus Nvidia's 29.4x before the exit. The spread between growth and value multiples reached 23 percentage points in Q1, the widest since March 2000. Reversion trades become mechanical when dispersion exceeds 20 points historically.
Watch for June 30 filings due August 14, when Q2 positions will show whether funds held energy through the May crude rally or took profits above $82. Semiconductor positions matter more: if managers re-entered tech after the April sell-off, the rotation thesis weakens. If they held out or added energy above current prices, capital markets price in sustained value preference through year-end. The Dallas Federal Reserve energy sentiment survey June 25 will indicate whether allocators see structural supply tightness or tactical trade.
Three funds—Lone Pine, Maverick, Tiger Global—now hold $4.1 billion in energy versus $840 million in AI-related positions, an inverse of their Q4 2023 weighting. That is not opinion. That is 13F fact filed under securities law.