This fund sold out of Facebook's parent and PayPal before their earnings disasters. Here's what it bought instead.

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Need to Know: What this fund bought after its timely sales of Meta and PayPal

Facebook parent Meta Platforms was probably the least loved megacap tech stock before its slide over its weak first-quarter outlook, but its sheer size meant it was a widely owned holding — according to FactSet, 1,560 funds that have filed 13-F reports for the period ending Dec. 31 held the stock.

Yiu isn’t dismissive of the metaverse but he says there are better alternatives, such as graphics chip maker Nvidia NVDA, +1.91%. “We would rather have Nvidia, which is doing quite well outside of the metaverse, and if the metaverse is going to come, it’s going to take a good chunk of that,” he says.

More broadly, Yiu says it’s a difficult environment and one where you have to be highly selective. He contrasts a company such as Peloton Interactive PTON, +1.64% — which he says might not exist in a year’s time if it isn’t taken over by Nike or Amazon, given the cash it’s burning — with companies such as Microsoft MSFT, +1.14% and Google. “At the moment, it’s quite chaotic in the market.

NCR NCR, +12.14% is due to surge, as the point-of-sale software maker said it’s conducting a strategic review.

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