Ken Griffin, founder and director of hedge fund Citadel Advisors, is known for his fascination with diversification. His portfolios contain nearly 7,000 positions and manage over $102 billion in assets. This extensive diversification allows him to minimize the risks associated with individual stocks. Still, even such seasoned investors as Griffin sometimes make decisions to make significant changes to their portfolios. In the last quarter, we saw significant adjustments to some of his key investments.

Ken Griffin, one of the most successful investors of the past three decades, boasts annual returns of nearly 20% for his flagship Wellington Fund, nearly double the performance of the S&P 500. Although his portfolios include a wide range of stocks, his recent moves to adjust his portfolio are attracting attention.

PayPal Holdings $PYPL-2.7%

PayPal

PYPL

$77.88 -$2.20 -2.75%

Capital Structure

Market Cap

79.6B

Enterpr. Val.

84.9B

Valuation

P/E

18.9

P/S

2.6

Open $80.40

Day range $77.73 - $80.63

52 week range $50.25 - $80.63

One stock that Griffin has trimmed significantly in the last quarter is PayPal Holdings. This payments giant, which has long been on a roll thanks to a pandemic boom in online shopping, has faced stiff competition in recent years and its performance has been under pressure. Despite new CEO Alex Criss trying to turn the company's course, Griffin has decided to cut his stake by about 2.4 million shares. Although he still owns a significant amount of shares (about 6.3 million), the value of his investment has fallen to $363 million.

S&P Global $SPGI+0.2%

S&P Global Inc.

SPGI

$512.72 $1.02 +0.20%

Capital Structure

Market Cap

160.5B

Enterpr. Val.

170.7B

Valuation

P/E

48.7

P/S

12.1

Open $511.60

Day range $511.19 - $516.68

52 week range $340.49 - $528.02

Another significant change in Griffin's portfolio was the reduction in S&P Global shares. Griffin reduced his stake by nearly a third, to 1 million shares worth $460 million. The move came as a surprise, as Griffin had previously been increasing its stake and S&P Global had proven to be an excellent dividend title, with annual dividend growth of more than 11% over the past decade. Given that S&P Global shares have risen 35% over the past year, this reduction may be an example of earnings realization.

Microsoft $MSFT-0.8%

Microsoft

MSFT

$428.02 -$3.29 -0.76%

Capital Structure

Market Cap

3.2T

Enterpr. Val.

3.3T

Valuation

P/E

36.2

P/S

13.0

Open $431.52

Day range $427.47 - $431.83

52 week range $311.21 - $468.35

The biggest reduction, however, was in Microsoft stock. Griffin reduced its stake to 1.2 million shares from the original more than 1.7 million. The move is all the more interesting because other investors in the technology sector have been increasing their stakes in Microsoft. Microsoft, whose shares have risen 31% in the past year and 78% since the start of the AI boom, has had a strong performance and continued growth. Griffin has therefore decided to reduce its exposure to this fast-growing company.

Ken Griffin, despite his tremendous diversification and success rate, continues to adjust his portfolio based on current market conditions and personal strategies. His recent moves show that even the greatest investors are not immune to change and the need to adjust their investment strategies. Every move he makes can be instructive for individual investors trying to optimize their portfolios.

Disclaimer: There is a lot of inspiration to be found on Bulios, but stock selection and portfolio construction is up to you, so always do a thorough analysis of your own.

Source: CNN, 247wallst.com.