Wall Street’s Biggest Funds Are Dumping Broadcom and Adding Taiwan Semiconductor. Time to Follow the ‘Smart Money?’

Second-quarter 13F filings, disclosed late last week for positions held as of June 30, tell a clear story inside the semiconductor trade: the biggest hedge funds rotated out of Broadcom (NASDAQ:AVGO | AVGO Price Prediction) and into Taiwan Semiconductor Manufacturing (NYSE:TSM). Let’s take a look at what funds bought and sold the two chip titans.

Loeb and Druckenmiller Both Sell Broadcom and Buy Taiwan Semi

On Taiwan Semiconductor, David Tepper’s Appaloosa added 322,500 shares to reach 1,650,000 shares worth $787,990,500, Dan Loeb’s Third Point added 185,000 shares to reach 460,000 shares worth $219,682,200, and Stanley Druckenmiller’s Duquesne Family Office added 94,400 shares to reach 589,680 shares worth $281,613,000. On Broadcom, the same books moved the opposite direction: Dan Loeb’s Third Point exited entirely, selling all 50,000 shares, and Stanley Druckenmiller’s Duquesne also exited entirely, selling all 195,955 shares.

Loeb’s rotation extended across the…