Rotations are part of market cycles, with many investors looking to rebalance their portfolios to take advantage of trends they see lying ahead. Indeed, depending on one’s time horizon (and the amount of gains investors have in certain stocks), these decisions can become very complicated.
But for retail investors looking for hints of where to look as examples of trimming some holdings and adding new positions, looking at what billionaire investors are doing is an easy-to-understand strategy and one employed by many investors. As it happens, Nvidia (NASDAQ:NVDA) is one stock in which I’ve noticed a significant amount of selling take place from high net worth investors, with one key Canadian stock seeing outsized gains.
Here’s why that may be the case.
Source: Getty Images
Why sell Nvidia stock?
Nvidia has undoubtedly been one of the best growth stock investments anyone could have made over any long-term time frame. Up more than 1,300% over the past five years (and much more than that, depending how far back investors want to go), the AI trade is one that’s certainly propelling this stock to new all-time highs.
Now with a valuation of around $4.8 trillion and a trailing price-earnings multiple around 49 times, this is a stock that’s by no means cheap. And given the amount of uncertainty around future infrastructure spend for the AI buildout, it’s understandable why some investors may be looking to take some chips off the table.
Israel Englander of Millennium Management, Chase Coleman at Tiger Global and David Tepper of Appaloosa are among the billionaire investors that have sold hundreds of thousands of shares of NVDA stock of late, according to their 13-F filings. I’m assuming the aforementioned reasons are key to these investor’s rationale in locking in gains at this point in the cycle. Indeed, tax considerations are key, so these investors must see something in the way of storm clouds ahead to employ such a strategy.
What are these investors doing with their excess capital?
Now, these investors aren’t sitting on cash – they’re pivoting to Brookfield Asset Management (TSX:BAM), a TSX powerhouse in alternatives.
Bill Ackman of Pershing Square recently ramped his stake five-fold to more than 22 million shares since mid-2025. His view is that this is a company with plenty of deployable capital for growth. I agree.
Another key billionaire who has trimmed Nvidia and added Brookfield is Stanley Druckenmiller, one of the best investors of all times. Even as Nvidia’s stock price continues to soar due to rising demand for chips, Ackman, Coleman-linked funds, and others favour BAM’s real estate, infra, and renewables plays.
Why Brookfield?
Brookfield Asset Management currently holds more than $850 billion-plus in assets, posting 24% distributable earnings growth in 2024 and 15% in 2025. Impressively, the company’s Q3 fee-related earnings jumped 20% year-over-year to solid levels, with revenue from predictable real assets beating tech volatility. Notably, this is a stock that also yields 3.5%, with a management team that’s targeting a doubling of its assets under management to $2 trillion by 2030. That’s a growth story I like.
With the company’s debt down, cash flow up, and global infrastructure spend favouring this name over other frothy AI bets, Brookfield’s valuation certainly makes sense right now (at least to me).
