Warren Buffett has revealed his “mystery stock” to be Chubb (NYSE:CB), sending shares of the insurer higher. Buffett first purchased CB stock during the third quarter of 2023, although he requested confidential treatment of his position. This was likely done in order for Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) to build up a sizable stake without affecting the share price with a public disclosure. As one of the most famous hedge fund managers of all time, any stock that Buffett buys will likely see a surge in price as soon as the purchase is disclosed to the public.
Berkshire picked up an initial stake of 8.14 million shares in Q3 2023 before increasing its position by 146.82% the following quarter. In Q1 2024, the hedge fund increased its position by another 28.97%, bringing its total stake to 25.92 million shares, or 2.03% of Berkshire’s total 13F portfolio.
The 5 Biggest Buyers of CB Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. With the May 15 Q1 13F deadline past us, anyone can now view the equity and option positions of institutional investors as of March 31.
During Q1, 1,612 funds reported a stake in CB, an increase of 4% or 62 funds compared to the prior quarter. However, the total number of shares owned by these funds declined by 1.38% to 355.86 million shares. The small decrease doesn’t really provide any concrete signals.
Hedge funds, a subset of institutional investors, appeared to be bearish on CB stock. 281 hedge funds disclosed a stake in the insurer, an increase of 29 funds compared to Q4. At the same time, total shares owned by hedge funds declined by 7.73% to 58.80 million.
With that in mind, let’s take a look at the top buyers of Chubb during Q1:
- Berkshire Hathaway bought 5.82 million shares, bringing its stake to 25.93 million shares.
- Capital Research Global Investors bought 2.06 million shares, bringing its stake to 6.71 million shares.
- Morgan Stanley (NYSE:MS) bought 1.37 million shares, bringing its stake to 5.56 million shares.
- First Trust Advisors bought 748,253 shares, bringing its stake to 1.09 million shares.
- National Pension Service bought 703,142 shares after previously owning zero shares.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
