How to view Oracle after its big surge? Huge disagreements among institutions in Q3—some increased their positions, while others sold out to "escape at the top."

How to view Oracle after its big surge? Huge disagreements among institutions in Q3—some increased their positions, while others sold out to "escape at the top."

After a historic surge in share price driven by the AI boom, software giant Oracle has become a key point of contention among top investment institutions in the third quarter.

According to 13F filings, billionaire hedge fund David Tepper's Appaloosa completely liquidated its entire Oracle holdings, while Japanese investment giant SoftBank also fully exited its investment in the company.

Meanwhile, two family offices of Sweden's Rausing family chose to increase their holdings in Oracle during the third quarter.

In the third quarter, Oracle shares posted the biggest one-day gain since 1992, after which Chairman Ellison's wealth surged by $89 billion in a single day, setting the largest single-day increase ever recorded by the Bloomberg Billionaires Index.

However, the stock price subsequently fell by about 30% cumulatively, and the 5-year credit default swap (CDS) spread broke through 100 basis points.

Institutions "Exiting at the Top" and Increasing Positions Coexist

Institutional investors showed a clear polarization in their operations on Oracle during the third quarter.

According to Bloomberg, Appaloosa LP not only liquidated all Oracle shares, but also sold all Intel holdings and most of its UnitedHealth Group positions. The firm established new positions in American Airlines Group and KeyCorp in the same period.

Japanese multinational investment company SoftBank also exited Oracle in the third quarter.

According to its 13F filing, SoftBank cleared all holdings of Oracle and Cipher Mining in the quarter ended September 30. During the same period, SoftBank established new positions in Intel and Klarna, buying about 87 million shares of Intel and 15.4 million shares of Klarna.

In contrast, some family offices chose to increase their holdings of Oracle during this period.

Filings show that over the three months ending September 30, two family offices of Sweden’s Rausing family increased their holdings of Oracle shares.

Another institution bullish on Oracle is the investment firm managing part of the estate of Microsoft co-founder Paul Allen, which also increased its investment in the software company during the same period. These purchases indicate that, in the view of some long-term investors, Oracle’s AI-driven growth story is far from over.

 

Information on these institutions' position changes all comes from 13F filings. According to regulations, managers with more than $100 million in US stock assets must submit this filing within 45 days after the end of each quarter to disclose their holdings.

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