If you think the market moves because of the news on TV, let me tell you a secret: the ones who really move the market are the institutions. Today we’re going to see what they did in the last quarter of 2025 with the public data from the 13F filing. Big cuts in tech stocks, very interesting shifts toward healthcare and software, and how to read all of this for your options trading.
What is the 13F filing?
- Rotations: which sectors that gigantic volume of capital is moving toward
- Deflating: where they’re cutting, for those trying not to follow the fashion
- Conviction: where they’re increasing, where they keep investing more
The Q4 2025 pattern: cuts in AI megacaps, buys in healthcare and value
If we look at the latest filing submitted a few weeks ago, there’s a fairly clear pattern: quite a few cuts in typical megacap positions, especially on the AI side, and at the same time very selective buys in more value or defensive sectors like healthcare, insurance and more specific software.
Berkshire Hathaway: Buffett keeps piling up cash
When Buffett trims something, this isn’t a reason to panic or to sell everything he sells. But you do have to take into account the concentration and the cycle we might be starting to enter.
Bridgewater: shift toward healthcare and pharma
- Entered UnitedHealth — bought right on the fairly sharp drop it had
- Bought Dell and added more positions
- Multiplied its position in Eli Lilly — famous anti-obesity drugs
- Closed positions in Atlassian
Here we see how Bridgewater is rotating toward “big” healthcare sectors, more quality, more defense. Buying on the UnitedHealth drop is an interesting move.
Tiger Global and D1: cuts in the AI giants
Tech firms like Tiger Global or D1 Capital trimmed fairly significant positions in AI giants like Microsoft, Amazon or Nvidia. On the other hand, D1 increased notably in Oracle. The pattern: they keep the core somewhat, but drop the volume a lot when the prices of some stocks are quite expensive.
BlackRock and Vanguard: careful with the interpretation
With the two largest funds in the world you have to be especially careful. They’re funds that have a huge number of ETFs inside, and they’re obligated to do rotations and rebalances of the indexes. The massive changes in these funds are usually more a matter of flow or index rebalancing, not because they’re seeing an investment opportunity in a particular stock or sector. You always have to really look at what kind of fund it is when you see this type of movement.
Michael Burry: always take with a grain of salt
As always, Burry is a fairly particular manager: a very concentrated fund, very few positions. A few months ago it was even confirmed that he was going to close the fund and step down as lead manager. There was a lot of controversy around all of this. That’s why you have to take his positions into account, but take them with a grain of salt.
Checklist to read a 13F on your own
How to use this data without falling into traps
Don’t copy exactly what they do — it’s an idea radar, not an entry signal
Look at the direction and the size — take into account the percentages of the portfolios these funds move
Cross-check with your own reading — your catalysts, your volatility, your technical analysis. The 13F is an extra, not your strategy
If you trade options, these rotations matter — they usually change the skew of the options chain, implied volatility and the odd bit of flow. That’s where you can adapt all this to trade with probability in your favor
Conclusion
Q4 2025 leaves a fairly clear message: institutions are cutting exposure in AI megacaps, rotating toward healthcare and defensive software, and piling up cash at historic levels. It’s not for copying trades, but for understanding the underlying currents that move the market. If you trade options, these rotations directly affect the skew, implied volatility and the liquidity of the chains you trade. Keep it in mind, cross the information with your analysis in ProRealTime and always trade with probability in your favor.
