Squarepoint Ops 13F Portfolio

Squarepoint’s biggest adds cluster around three ideas: own the pipes of AI, own sector baskets where stock‑picking risk is elevated, and lock in durable cashflows in healthcare and staples.

On AI infrastructure, they are aggressively backing the semiconductor capital chain and adjacent compute names:

• AMAT is the standout: up +215.5% in shares, now 1.46% of the book worth $750.4M, with an estimated $512.6M added this quarter.
• INTU is effectively a new core position in enterprise software, with shares up +12,436.9% to $242.0M — a bet on embedded software in the corporate stack rather than frothier AI startups.
• Intel and TSM both saw triple‑digit percentage share increases (+916.3% and +151.9%), a clear vote for diversified CPU/foundry capacity rather than a single AI GPU choke point.

They are also leaning into systematic exposure and targeted sectors instead of idiosyncratic single names:

• SPY is a major capital sink at $935.5M, with an estimated $753.7M added, effectively restoring S&P beta after trimming elsewhere.
• XLC, a new $519.8M position, gives them broad communications/media exposure — a basket approach to platforms like Meta, Alphabet, and telcos.

Defensives are getting real capital behind them:

• GILD’s stake exploded (+784.2% shares, +$204.3M), alongside big increases in JNJ (+71.1%), ISRG (+212.8%), MDT (+28.7%), and IDXX (+214.2%).
• In staples, PEP jumps +230.9% in shares to $268.1M — notable given they’re still slightly underwater at -4.6% vs. cost, a conviction add rather than performance‑chasing.
• EQIX, up +450.9% to $267.0M, blends secular data‑center demand with REIT cash‑flow characteristics — AI infrastructure plus yield in a single line item.

The funding sources are telling: Squarepoint is not de‑risking AI wholesale; they’re rotating within it and cashing out of their biggest winners.

The largest dollar trim is IVV, down -34.2%, which alone frees an estimated $3.11B. That sale underwrites much of the new single‑name and thematic exposure without lifting overall market risk. They’re also taking serious profits in legacy compounders:

• GOOGL is cut -78.6% (roughly -$646.5M est. at current prices) despite a +53.2% gain vs. their cost base.
• MU is down -44.4% after an extraordinary +435.0% gain vs. cost; SNDK is trimmed -24.0% with a near four‑digit percentage gain.
• MSFT loses -30.5% of its shares (about -$317.5M est.), and LRCX is reduced -37.1% after more than a +182.2% run.

They’re also quietly backing away from more fragile or controversial stories:

• TSLA is down -25.8%, even though it remains a top position at 0.97% of the book, suggesting waning conviction in that specific EV cyclical versus broader industrials like CSX, which they raised +323.5%.
• High‑multiple software gets selective pruning: SNOW is cut -19.6%, while capital rotates into larger, cash‑generative platforms like INTU and NOW (where they actually doubled exposure by +107.5%).
• In financials, they trim GS (-24.2%) and MS (-13.5%) while adding to fee‑heavy TROW (+19.1%) and WFC (+30.4%), further emphasizing steady earnings over pure trading leverage.

Sector data confirms the story: Technology remains the backbone at 33.97% of the book, but the relative weight is flat to slightly down from 34.41% even as they re‑tool within it. The real movement is away from unclassified broad beta (down from 42.83% to 34.1%) toward discrete sectors.

Consumer discretionary jumps from 6.92% to 9.88%, driven by adds to AMZN (+17.3%), WMT (+75.3%), MAR (+8,955.7%), CMG (+139.4%), NFLX (+59.5%), and ROST (+45.6%). This is a clear bet that the US consumer stays resilient and that operating leverage in travel, off‑price retail, and digital entertainment still has room to play.

Healthcare climbs from 4.55% to 7.26% as they build out JNJ, ISRG, GILD, MDT, UNH, LLY (despite a -15.4% trim, it’s still $294.5M), and IDXX. It’s classic late‑cycle behavior: add idiosyncratic growth and patent‑protected cashflows as a ballast.

Energy more than doubles from 1.12% to 3.1% through big increases in XOM (+171.3%) and CVX (+192.2%), creating a real macro hedge on commodity prices and inflation. Meanwhile, Real Estate ticks up from 0.22% to 1.18% via the EQIX build, and Consumer Staples edges higher from 1.49% to 1.93% on PEP and MNST (even as MNST is trimmed -32.2%).

Financials and Industrials both ease slightly — Finance from 3.88% to 3.58%, Industrials from 3.19% to 2.92% — as they concentrate on specific franchises like WFC and CSX rather than broad sector exposure.

Put together, Squarepoint looks like a manager expecting continued equity upside, but with fatter left tails — so they are engineering a portfolio that can survive a factor unwind. They keep market beta high via IVV and SPY, yet reallocate around 8–9 percentage points of the book from undifferentiated exposure into targeted themes.

On the growth side, they are migrating from pure platform tech dominance toward the plumbing: semiconductor equipment (AMAT, KLAC, ADI), diversified compute (INTC, TSM), and data‑center real estate (EQIX). AI remains a core bet, but not purely through the headline names; even NVDA and AMD are being complemented by upstream and downstream beneficiaries rather than replaced.

The build‑out in healthcare and consumer defensives looks like preparation for higher volatility in rates and margins. JNJ, GILD, ISRG, MDT, and IDXX give them regulated, sticky revenue streams; WMT, PEP, and CSX add volume‑driven resilience even under pressure.

Energy’s jump to 3.1% via XOM and CVX suggests they want explicit upside to commodity prices and geopolitical risk — a hedge that also works if AI‑driven power demand keeps creeping higher. Expect future quarters to continue this pattern: trims in fully‑valued winners (Micron, Alphabet, parts of software) funding incremental buys in real‑asset infrastructure and durable cashflow names, with SPY/IVV acting as the throttle on overall risk rather than the core of the thesis.