25 Most Owned Stocks by Hedge Funds
In this article, we discuss 25 most owned stocks by hedge funds. If you want to skip our detailed analysis of popular hedge funds and their performance, head directly to 5 Most Owned Stocks by Hedge Funds.
In 2022, the hedge fund industry experienced a decline of 2.4%, showing some improvement from a challenging first half of the year when the industry was down 4.6%. The losses were primarily influenced by the difficult market circumstances for high-risk assets, particularly impacting hedge funds with a long-biased approach and/or higher volatility. This marked the weakest performance for the hedge fund industry since 2018 when it also posted a 2.4% loss. Looking at the five-year performance, hedge funds have achieved a compounded annual return of +4.2%, demonstrating a more favorable performance compared to bonds, which experienced a decline of 2.0%. Aurum, a hedge fund investment specialist, noted that there were clear winners and losers in the hedge fund industry in 2022. The best-performing strategies were multi-strategy (+9.5%), quant (+8.5%), and macro (+6.7%). Strategies that typically have a higher correlation to equities and fixed income, which experienced poor performance, struggled the most.
Patrick Ghali, managing partner of hedge fund advisory firm Sussex Partners, told Reuters on January 10, 2023:
"Investors need to look under the surface to understand the industry performance last year. Long-short hedge funds are the biggest asset-weighted part of the industry. Overall, I believe it was a good year for hedge funds."
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According to Hedge Fund Research (HFR), the total global capital invested in hedge funds reached $3.83 trillion by the end of 2022, reflecting a quarterly increase of $44 billion. Hedge funds managed by The Citco Group Limited experienced a weighted-average return of -7.02% for the entire year. Smaller funds generally outperformed larger ones, as indicated by the median return of -2.86%. HFR also highlighted that macro strategies, including fundamental commodity, discretionary, and quantitative trend-following CTA sub-strategies, were the leading hedge fund strategies globally.
Despite the dull performance of hedge funds, Citadel, led by Ken Griffin, achieved an exceptional feat by generating an unprecedented $16 billion in profits for its clients in 2022. This performance not only surpassed other players in the industry but also stands as one of the most prominent financial successes in history. Chairman Rick Sopher of LCH Investments commented:
“The largest gains were once again made by the large multi-strategy hedge funds like Citadel, DE Shaw and Millennium. The strong gains they have generated in recent years reflect their increasing dominance in strategies which do not depend on rising asset prices, and their substantial size.”
Individual investors often look up to elite hedge funds and try to imitate their performance. Some of the most owned stocks by hedge funds include Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Meta Platforms, Inc. (NASDAQ:META). Investors can also check out 12 Hot Stocks to Buy According to Hedge Funds and 15 Best Blue Chip Stocks To Buy According to Hedge Funds.
Our Methodology
We scanned Insider Monkey’s database of 943 hedge funds as of the first quarter of 2023 and picked the top 25 companies with the highest number of hedge fund investors. These are the most owned stocks among hedge funds.
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Most Owned Stocks by Hedge Funds
25. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 91
Walmart Inc. (NYSE:WMT) operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, and discount stores. On February 21, Walmart Inc. (NYSE:WMT) declared a $0.57 per share quarterly dividend, a 1.8% increase from its prior dividend of $0.56. The next dividend payment is to be made on September 5, to shareholders of record as of August 11. 2023 marks the 50th consecutive year of dividend increases for the retail giant.
In the first quarter of 2023, D E Shaw held the largest stake in the company, comprising 4.8 million shares worth approximately $710 million.
In addition to Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Meta Platforms, Inc. (NASDAQ:META), Walmart Inc. (NYSE:WMT) is one of the most owned stocks by hedge funds.
In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Walmart Inc. (NYSE:WMT) was one of them. Here is what the fund said:
“The pandemic has created challenges for businesses large and small; one major challenge for large essential retailers such as ClearBridge holdings Home Depot, Walmart Inc. (NYSE:WMT) and Costco have been ensuring adequate staffing to meet demand under trying conditions. All three instituted enhanced pay practices during the pandemic, with raises, unplanned bonuses and other benefits helping compensate employees for their efforts in a difficult environment. In September 2020 Walmart raised wages for 165,000 employees, including a number of entry positions to $15 an hour. It followed this in February with a raise for 425,000 workers that moved its average pay above $15 an hour.”
24. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 91
Bank of America Corporation (NYSE:BAC) provides banking and financial products and services. The company’s operations are divided into Consumer Banking, Global Wealth & Investment Management, Global Banking, and Global Markets segments. It is one of the top most owned stocks by hedge funds. On July 5, Bank of America Corporation (NYSE:BAC) announced that it will increase its quarterly dividend from $0.22 per share to $0.24 per share, beginning in the third quarter. This decision comes after successfully completing the Federal Reserve's annual stress test and is subject to approval from the board of directors.
According to Insider Monkey’s first quarter database, 91 hedge funds were long Bank of America Corporation (NYSE:BAC), compared to 100 funds in the earlier quarter.
ClearBridge Large Cap Value Strategy made the following comment about Bank of America Corporation (NYSE:BAC) in its first quarter 2023 investor letter:
“Our quality bias has always led us to gravitate toward banks with strong and diverse deposit bases; those we own tend to be the larger players, which we also expect to be the biggest beneficiaries from a flight to safety in terms of deposits. JPMorgan Chase comes to mind especially here, but so does Bank of America Corporation (NYSE:BAC) despite its weakness in March, as well as U.S. Bancorp, to which we added opportunistically in the quarter.”
23. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 95
On June 27, The Walt Disney Company (NYSE:DIS) stock saw a slight increase in pre-market trading after Bank of America expressed confidence in the company's strategic direction. Despite concerns regarding the box office, streaming business, and other challenges, analyst Jessica Reif Ehrlich maintained a Buy rating and set a price target of $135 on the shares. The analyst acknowledged that some recent content, including the Pixar film Elemental, did not meet audience expectations, but attributed this to production circumstances during the pandemic and past leadership.
The Walt Disney Company (NYSE:DIS) is one of the most owned stocks by hedge funds. According to Insider Monkey’s first quarter database, The Walt Disney Company (NYSE:DIS) was part of 95 hedge fund portfolios, with Nelson Peltz’s Trian Partners holding the largest stake, consisting of 5.9 million shares worth $592.4 million.
VGI Partners made the following comment about The Walt Disney Company (NYSE:DIS) in its 2022 annual investor letter:
“The Walt Disney Company (NYSE:DIS) is a diversified media conglomerate operating media networks, theme parks, film and TV studios and direct-to-consumer streaming services. It is the global leader in theme parks with hotels and cruise lines aimed at families. Key assets within Disney are the instantly recognisable entertainment franchises that have multiple avenues of monetisation such as Mickey Mouse, Star Wars, ABC and Marvel’s Avengers.
Disney’s share price declined due to a number of factors in 2022, presenting us the chance to purchase a long-admired business and its unique collection of valuable intellectual property assets at what we consider to be a very attractive valuation. Summarily, the EPS of Disney has declined from US$7 in 2018 to ~US$2.60 in 2022 but we believe that the earnings power of the assets has not diminished to anywhere near this extent.
Disney is currently undergoing a business transition within the Media and Entertainment Distribution division (DMED) from traditional media property distribution via third parties (i.e. cinemas and broadcast networks) to a Direct-To-Consumer (DTC) model via the Disney+ streaming service. A key element of our thesis is that the earnings power of the company is currently being masked by the marketing and content investments within Disney+ and that this will normalize over the next several years. To put this in perspective, Disney+ (DTC sub-segment) currently generates operating losses of over US$3.3bn (a negative 14% operating margin) compared to operating margins at its nearest streaming competitor, Netflix, of +15.5%…” (Click here to read the full text)
22. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 96
ServiceNow, Inc. (NYSE:NOW) provides cloud computing solutions worldwide that help define, organize, streamline, and automate services. It is one of the most owned stocks by hedge funds. ServiceNow, Inc. (NYSE:NOW) announced on May 16 its plan to launch its first share repurchase program, with a maximum value of $1.5 billion. The company's board approved the program, stating that its main purpose was managing the potential dilution resulting from future grants of employee equity and employee stock purchase programs.
According to Insider Monkey’s first quarter database, 96 hedge funds were bullish on ServiceNow, Inc. (NYSE:NOW), compared to 97 funds in the prior quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with 1.5 million shares worth $713.8 million.
Lakehouse Global Growth Fund made the following comment about ServiceNow, Inc. (NYSE:NOW) in its April 2023 investor letter:
“Despite a difficult macro environment, US-based software company ServiceNow, Inc. (NYSE:NOW) proved resilient with a healthy combination of organic growth and profitability. Subscription revenues grew 24% year-on-year (27% constant currency) to $2.0 billion and operating income grew 26% year-on-year to $552 million. The company’s core operating metrics were equally strong with remaining performance obligations growing 24% year-on-year and renewal rates holding firm at 98%. ServiceNow’s renewal rates are noteworthy as not only are they best-in-class but they are also remarkably consistent, typically in the range of 97% to 99%. They speak to the mission critical nature of the platform and are a key driver of long term annuity value. Overall, we continue to believe that ServiceNow is one of the highest quality software businesses around as the combination of consistent growth at scale, robust free cash flow generation and a large addressable market make it an attractive opportunity.”
21. Thermo Fisher Scientific Inc. (NYSE:TMO)
Number of Hedge Fund Holders: 98
Thermo Fisher Scientific Inc. (NYSE:TMO) offers a wide range of solutions in the field of life sciences, including analytical instruments, specialized diagnostics, laboratory products, and biopharmaceutical services. On May 24, Thermo Fisher Scientific Inc. (NYSE:TMO) declared a $0.35 per share quarterly dividend, in line with previous. The dividend is payable on July 14, to shareholders of record on June 15. It is one of the most owned stocks by hedge funds.
According to Insider Monkey’s first quarter database, David Blood and Al Gore’s Generation Investment Management is the largest stakeholder of the company, with 1.48 million shares worth $854.8 million.
Polen Global Growth Strategy made the following comment about Thermo Fisher Scientific Inc. (NYSE:TMO) in its Q1 2023 investor letter:
“During the quarter, we also raised our position in Thermo Fisher Scientific Inc. (NYSE:TMO). The company effectively sells pickaxes and shovels to the life sciences industry, is well balanced, is durable, and has a strong management team at the helm. We took an initial position recently and are now raising it to an average weight within the Portfolio. During the most recent quarter, the company grew revenue 11% in constant currency. Core organic growth, excluding COVID-19 testing revenue which fell 16%, grew a very strong 13%. This company plays an important role within the Portfolio as a “safety” within our growth spectrum approach and over the next five years we expect EBITDA and EPS to grow at roughly low double digits and low teens, respectively.”
20. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 99
Adobe Inc. (NASDAQ:ADBE) is a diversified software company and its company’s operations are divided into three segments – Digital Media, Digital Experience, and Publishing and Advertising. On June 15, Adobe Inc. (NASDAQ:ADBE) reported a Q2 non-GAAP EPS of $3.91 and a revenue of $4.82 billion, outperforming Wall Street estimates by $0.12 and $50 million, respectively. Adobe repurchased approximately 2.7 million shares during the second quarter of 2023.
Adobe Inc. (NASDAQ:ADBE), with 99 long positions in the first quarter of 2023, is one of the most owned stocks by hedge funds. Ken Griffin’s Citadel Investment Group is the biggest position holder in the company, with 1.89 million shares worth $731.5 million.
ClearBridge Large Cap Growth Strategy made the following comment about Adobe Inc. (NASDAQ:ADBE) in its second quarter 2023 investor letter:
“We increased our position in marketing and design software maker Adobe Inc. (NASDAQ:ADBE). The company is protecting its leadership position by moving quickly into generative AI and license protection. It developed Firefly into a product that can be monetized, moving AI from a previously perceived risk into an opportunity.”
19. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 102
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the most owned stocks by hedge funds. On July 6, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stated that it anticipates no significant repercussions on its business after China's recent restrictions on gallium and germanium exports. According to reports, TSM is planning to commence the construction of a second facility in Japan in April 2024. The company is considering the initiation of a new plant in Kumamoto Prefecture, with a budget exceeding ￥1 trillion, equivalent to just over $7 billion.
According to Insider Monkey’s first quarter database, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was part of 102 hedge fund portfolios, up from 86 in the prior quarter.
Baron Emerging Markets Fund made the following comment about Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its first quarter 2023 investor letter:
“Semiconductor giant Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) contributed in the first quarter due to easing geopolitical concerns and expectations for end-demand recovery later in 2023. We retain conviction that Taiwan Semi’s technological leadership; pricing power; and exposure to secular growth markets, including high-performance computing, automotive, 5G, and IoT; will allow the company to sustain strong earnings growth over the next several years.”
18. PayPal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 103
PayPal Holdings, Inc. (NASDAQ:PYPL) is another stock favored by hedge funds. On June 20, KKR & Co. Inc. (NYSE:KKR) announced that it will purchase up to €40 billion of buy now, pay later (BNPL) loan receivables amassed by PayPal Holdings, Inc. (NASDAQ:PYPL) in France, Germany, Italy, Spain, and the United Kingdom. PayPal will still carry out customer-facing operations, including underwriting and servicing associated with its European BNPL products. This arrangement alleviates some risk off PayPal Holdings, Inc. (NASDAQ:PYPL)’s balance sheet and frees up cash.
According to Insider Monkey’s first quarter database, 103 hedge funds were bullish on PayPal Holdings, Inc. (NASDAQ:PYPL), compared to 115 funds in the prior quarter. D E Shaw is a prominent stakeholder of the company, with 5.6 million shares worth $426 million.
Manole Capital Management made the following comment about PayPal Holdings, Inc. (NASDAQ:PYPL) in its second quarter 2023 investor letter:
“For our purposes, we are just going to focus on software digital wallets, as they are much more common and accessible. If you own an iPhone, then you have an Apple Pay preloaded digital wallet. If you have a Samsung phone, you have Samsung Pay available for use. Those two, along with Google Pay and PayPal Holdings, Inc. (NASDAQ:PYPL), are the four most popular digital wallets today. According to the Payments Journal, PayPal has been used (over the last 12 months) by 62% of American consumers, followed by Apple Pay at 41% and Google Pay at 32%.
Over the last several years, P2P payments have made tremendous strides in adoption and usage. Whenever something becomes a verb, like just Venmo me $10, you know that it has been widely embraced by society. The concept of allowing individuals to pay each other, via our smartphones, has clearly taken off.
However, the biggest flaw or issue (that we’ve identified) is interoperability. Digital wallets allow users to pick their favorite card to make payments with. P2P acts as a bit of a “walled garden” and its funding source is still siloed. This is a critical aspect for future P2P growth, as Venmo users can’t pay Cash App users who can’t pay Zelle users. Visa is launching Visa+ next year and it has already signed up PayPal and Venmo as its initial customers. The global card networks seem like the perfect piece to solve this interoperability puzzle. Of course, this will only work if banks allow an independent network to serve as the gateway between disparate user bases…” (Click here to read the full text)
17. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 108
Netflix, Inc. (NASDAQ:NFLX) is a favorite stock among elite hedge funds. On July 10, Morgan Stanley analyst Benjamin Swinburne maintained an Equal Weight rating on Netflix, Inc. (NASDAQ:NFLX) and raised the price target on the shares to $450 from $350. The analyst noted that Netflix will potentially gain 2.2 million subscribers in the second-quarter, up from 1.55 million, given a "more modest churn" from the paid sharing announcements in the US and Canada, in addition to "solid" app download projections. He now forecasts advertising supported subscriptions to be approximately 30 million by the end of 2025, slightly lesser than anticipated.
According to Insider Monkey’s first quarter database, 108 hedge funds were bullish on Netflix, Inc. (NASDAQ:NFLX), compared to 117 funds in the prior quarter.
Artisan Developing World Fund made the following comment about Netflix, Inc. (NASDAQ:NFLX) in its second quarter 2023 investor letter:
“Top contributors to performance for the quarter included global streaming giant Netflix, Inc. (NASDAQ:NFLX). Netflix benefited from the success of the new ad tier that allows users to access the service at a lower price, and from the paid sharing initiative that allows multiple users to share an account for an additional fee.”
16. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of Hedge Fund Holders: 108
Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK-B) is one of the most owned stocks by hedge funds. On July 10, Berkshire Hathaway Energy agreed to purchase Dominion Energy, Inc. (NYSE:D)’s 50% stake in the Cove Point LNG plant in Maryland in a deal worth $3.3 billion. Berkshire already owns a 25% limited partner interest in Cove Point LNG, and the company will own a 75% stake after the deal finalizes.
According to Insider Monkey’s first quarter database, Berkshire Hathaway Inc. (NYSE:BRK-B) was found in 108 hedge fund portfolios, compared to 110 in the last quarter. Bill & Melinda Gates Foundation Trust is the largest stakeholder of the company, with a position worth just over $6 billion.
15. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 112
JPMorgan Chase & Co. (NYSE:JPM) is an American multinational financial services company that operates through Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset & Wealth Management segments. JPMorgan Chase & Co. (NYSE:JPM) is a highly favored stock by hedge funds. On May 15, the company declared a $1 per share quarterly dividend, in line with previous. The dividend is payable on July 31, to shareholders of record as of July 6.
According to Insider Monkey’s first quarter database, 112 hedge funds were long JPMorgan Chase & Co. (NYSE:JPM), compared to 100 funds in the earlier quarter. Ken Griffin’s Citadel Investment Group is the biggest stakeholder of the company.
Manole Capital Management made the following comment about JPMorgan Chase & Co. (NYSE:JPM) in its second quarter 2023 investor letter:
“It will be interesting to see what kind of policy decisions are made around regulation for institutions that are between $100 billion of assets and $700 billion of assets. As JPMorgan Chase & Co. (NYSE:JPM)’s purchase of First Republic shows, scale is a competitive advantage. It now has 13% of total US deposits and it manages 21% of America’s credit card spending. With additional regulatory burdens coming, banks are facing a profitability headwind and 100 to 300 basis points of possible ROE erosion.
The banking sector is facing a slow-moving crisis, but we aren’t sure it is enough to sink the overall health of the US consumer or economy. Credit will contract and lending standards will continue to rise. However, we do not see this problem escalating to the size and scale of previous banking crises.
Jamie Dimon, Chairman and CEO of JP Morgan Chase clearly sees the risks these FINTECH companies present. In his annual letter to shareholders, he stated that all incumbent banks should be “scared shitless” of these FINTECH rivals. Not only is his bank being attacked from multiple angles, but Apple just launched a cash management program with Goldman Sachs. On the first day of Apple’s savings program, it raised $400 million and eclipsed $1 billion in its first four days. Dimon specifically labeled Apple a bank the other day in an interview when he said, “It may not have insured deposits, but it’s a bank. If you move money, hold money, manage money, lend money — that’s a bank.”
14. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 116
UnitedHealth Group Incorporated (NYSE:UNH) operates as a diversified healthcare company in the United States. On June 26, Amedisys, Inc. (NASDAQ:AMED), a Louisiana-based healthcare provider, decided to terminate its prior merger agreement with Option Care Health, Inc. (NASDAQ:OPCH) and instead entered into a new merger agreement with UnitedHealth Group Incorporated (NYSE:UNH). Under the new agreement, UnitedHealth Group Incorporated (NYSE:UNH) will acquire Amedisys for $101 per share in cash.
UnitedHealth Group Incorporated (NYSE:UNH) is one of the most owned stocks by hedge funds. Insider Monkey’s first quarter database indicated that 116 hedge funds were bullish on the stock, up from 110 in the prior quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company.
L1 Capital International Fund made the following comment about UnitedHealth Group Incorporated (NYSE:UNH) in its first quarter 2023 investor letter:
“During the March 2023 quarter, while share prices changed, the change was largely in one direction, up, for companies in our Portfolio and on our Bench. We did take advantage of improving sentiment to higher growth technology companies and the share price of more defensive companies drifting down to divest our investment in Adobe and increase the Fund’s investment in UnitedHealth Group Incorporated (NYSE:UNH). United Health’s share price was also under moderate pressure due to regulatory announcements being very slightly adverse. We believe the market over-reacted to these announcements and the share price has recovered strongly over recent weeks.”
13. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 128
Alibaba Group Holding Limited (NYSE:BABA) is one of the most owned stocks by smart investors. On July 7, Alibaba Group Holding Limited (NYSE:BABA) introduced its text-to-image model called Tongyi Wanxiang, which utilizes generative AI technology. The company has made the model available for testing purposes to its corporate customers in China. Tongyi Wanxiang, the image generator, is anticipated to enter the competition with similar offerings from American counterparts such as OpenAI's DALL-E and Midjourney Inc.'s Midjourney.
Alibaba Group Holding Limited (NYSE:BABA) was found in 128 hedge fund portfolios at the end of Q1 2023, compared to 113 funds in the prior quarter. Alkeon Capital Management is a significant position holder in the company, with 4.6 million shares worth $471.5 million.
Baron Emerging Markets Fund made the following comment about Alibaba Group Holding Limited (NYSE:BABA) in its first quarter 2023 investor letter:
“Alibaba Group Holding Limited (NYSE:BABA) is the largest retailer and e-commerce company in China. Alibaba operates shopping platforms Taobao and Tmall and owns 33% of Ant Group, which operates Alipay, China’s largest third-party online payment provider. Shares of Alibaba were up this quarter, given meaningful margin expansion, guidance to stabilize core commerce market share in China, and an announced plan to split the company into six units which could further unlock value. We retain conviction that Alibaba is well positioned to benefit from China’s reopening and the ongoing growth in online commerce and cloud in China.”
12. Activision Blizzard, Inc. (NASDAQ:ATVI)
Number of Hedge Fund Holders: 128
Activision Blizzard, Inc. (NASDAQ:ATVI) develops and publishes interactive entertainment content. It is one of the favorite stocks of elite hedge funds. On July 11, Activision Blizzard, Inc. (NASDAQ:ATVI) stock climbed 5% after a federal court granted Microsoft Corporation (NASDAQ:MSFT) permission to proceed with its acquisition of the video game company for $69 billion. The court's decision came despite a lawsuit filed by the Federal Trade Commission in an attempt to prevent the acquisition from taking place.
According to Insider Monkey’s first quarter database, Warren Buffett’s Berkshire Hathaway is the largest position holder in Activision Blizzard, Inc. (NASDAQ:ATVI), with 49.4 million shares worth $4.2 billion.
Kinsman Oak Capital Partners made the following comment about Activision Blizzard, Inc. (NASDAQ:ATVI) in its first quarter 2023 investor letter:
“We closed our long position in Activision Blizzard, Inc. (NASDAQ:ATVI) on the last trading day of the quarter. We initiated the position in November 2021 and, despite crystalizing a gain on the investment, we are admittedly a little frustrated with how this has played out. In January 2022, Microsoft (MSFT) agreed to acquire the company for $95/share, but regulators are determined to block the transaction, and appear increasingly activist, in our opinion.”
11. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 131
At the end of June 2023, Apple Inc. (NASDAQ:AAPL)’s valuation surpassed $3 trillion, solidifying its position as the world's most valuable company. Citi analyst Atif Malik, who initiated coverage of Apple Inc. (NASDAQ:AAPL) with a Buy rating and a price target of $240, noted that investors are underestimating the potential for gross margin expansion by the tech giant. Malik also emphasized Apple's consistent market share gains over Android smartphones, its favorable position with the higher-end iPhone Pro and iPhone Pro Max models, continuous growth in China and India, the addition of high-margin Services revenue, and cost-cutting measures through chip development.
According to Insider Monkey’s first quarter database, Warren Buffett’s Berkshire Hathaway is the leading stakeholder of the company, with 915.5 million shares worth approximately $151 billion. Apple Inc. (NASDAQ:AAPL) remains a popular choice in the stock portfolios of elite hedge funds.
Manole Capital Management made the following comment about Apple Inc. (NASDAQ:AAPL) in its second quarter 2023 investor letter:
“Despite this, the S&P 500 is up 7% this year and the Nasdaq is up +11%. Technology rebounded from a challenging 2022 and many large tech companies are performing quite well this year. Through mid-May 2023, year-to-date performance of some of the most popular and largest tech names is impressive. For tech companies with market capitalizations over $1 trillion, Apple Inc. (NASDAQ:AAPL) is up +35%, Microsoft +33%, Amazon +39%, and Google is +40%. In terms of contribution to the S&P 500’s year-to-date return, Apple and Microsoft represent roughly half of its 2023 performance. Apple, and Microsoft now account for 13.9% of the entire S&P 500 or 80% more concentrated than 2008. For additional perspective, Apple’s market cap is at $2.8 trillion and that is larger than the market cap of the entire Russell 2000. To conclude, it’s distinctly getting more concentrated at the top.
For our purposes, we are just going to focus on software digital wallets, as they are much more common and accessible. If you own an iPhone, then you have an Apple Pay preloaded digital wallet. If you have a Samsung phone, you have Samsung Pay available for use. Those two, along with Google Pay and PayPal, are the four most popular digital wallets today. According to the Payments Journal, PayPal has been used (over the last 12 months) by 62% of American consumers, followed by Apple Pay at 41% and Google Pay at 32%.
Digital wallets have tons of advantages that we are embracing. When we attend Tampa Bay Lightning games, we love having our season tickets easily accessible on our phones (via the Apple Pay wallet), as well as our timed parking pass. When we travel, loading the airline ticket into our Apple Pay wallet is much more convenient than printing out a paper boarding pass. Others are using digital wallets to track their expenses, budget properly, and even help them easily pay their bills. Digital wallets are still in their infancy and have decades of future growth; we believe the smartphone is simply the best interface and platform for digital wallets…” (Click here to read the full text)
10. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 132
NVIDIA Corporation (NASDAQ:NVDA), an American semiconductor giant, is one of the most owned stocks among smart investors. On July 10, Goldman Sachs analyst Toshiya Hari reaffirmed a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) and expressed confidence in the company's advancement in the field of general artificial intelligence. The analyst also raised the firm's price target for Nvidia shares from $440 to $495, citing the notable growth in data center revenue, which implies a significant advancement for the company in this new phase.
According to Insider Monkey’s first quarter database, 132 hedge funds were bullish on NVIDIA Corporation (NASDAQ:NVDA), compared to 106 funds in the prior quarter. Rajiv Jain’s GQG Partners is a significant stakeholder of the company, with 8.2 million shares worth $2.3 billion.
ClearBridge Large Cap Growth Strategy made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its second quarter 2023 investor letter:
“The Strategy’s IT holdings also drove performance in the second quarter, led by the continued rerating of graphics chipmaker NVIDIA Corporation (NASDAQ:NVDA) as a key beneficiary of the generative AI boom. Nvidia is a good example of a select growth stock bought opportunistically where our long-term thesis has bloomed. We initiated the position in the fourth quarter of 2018 knowing that inference and training in the data center was an interesting although still early-stage growth driver. We knew that GPUs could be used to solve complex computing problems, but we didn’t know how quickly the training and learning efforts by Nvidia’s mega cap customers would hit an inflection point. Volatility in the gaming business created the entry point into the stock and we have built the position accordingly over time. Since the end of 2021, the stock’s portfolio weight grew from 4.5% to a high of 7.2% earlier in the second quarter before we trimmed it to manage our overall position sizing.
We will continue to monitor and adjust Nvidia’s position sizing to manage risk. Despite the sharp run up, we believe the company’s long-term runway remains compelling due to its advantaged positioning in a very large addressable market for GPUs. The current valuation looks expensive, yet Nvidia has real earnings and cash flow and the longer-term multiple looks more reasonable because of GPU pricing power.”
9. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 136
Salesforce, Inc. (NYSE:CRM) is an American tech company specializing in customer relationship management. On June 29, Salesforce, Inc. (NYSE:CRM) revealed its plans to invest $4 billion in its U.K. business over the span of five years, with the aim of enhancing artificial intelligence innovation. This investment follows a previous announcement in 2018, where the company committed $2.5 billion over five years.
Salesforce, Inc. (NYSE:CRM) stock is famous among hedge funds. At the end of the first quarter of 2023, 136 hedge funds were bullish on Salesforce, Inc. (NYSE:CRM), compared to 117 funds in the earlier quarter. Harris Associates is the largest stakeholder of the company, with 7.7 million shares worth $1.5 billion.
Ithaka US Growth Strategy made the following comment about Salesforce, Inc. (NYSE:CRM) in its first quarter 2023 investor letter:
“Salesforce, Inc. (NYSE:CRM) is the largest pure-play cloud software company, holding a leading market share in customer relationship management applications and a top-five market share position in the company’s other clouds (Marketing, Service, Platform, Analytics, Integration, and Commerce). The company’s software subscription term-license model differs from the traditional perpetual-license software model in two respects: (1) the software is hosted on centralized servers and delivered over the internet, as opposed to traditional enterprise software that is loaded directly onto customers’ hard drives or servers; and (2) the revenue model is subscription-based, typically charging monthly fees per user as opposed to charging one-time licensing fees. The stock’s strong relative performance followed a strong F4Q23 earnings release that easily beat Street expectations on the top- and bottom-lines. In addition to the beat, management announced a number of initiatives that activist investors have been clamoring for, specifically a halt to large M&A transactions and a focus on operating profitability.”
8. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 138
Mastercard Incorporated (NYSE:MA) engages in transaction processing and provides payment-related products and services worldwide. It is one of the most owned stocks by hedge funds. On June 26, Mastercard Incorporated (NYSE:MA) declared a $0.57 per share quarterly dividend, in line with previous. The dividend is payable on August 9, to shareholders of record on July 7.
According to Insider Monkey’s first quarter database, 138 hedge funds were bullish on Mastercard Incorporated (NYSE:MA), compared to 139 funds in the prior quarter. Charles Akre’s Akre Capital Management is the largest stakeholder of the company, with 5.8 million shares worth $2.13 billion.
Manole Capital Management made the following comment about Mastercard Incorporated (NYSE:MA) in its second quarter 2023 investor letter:
“We like to start out all of our discussions by telling investors who we are. We are FINTECH investors, and we define Fintech as “anything utilizing technology to improve an established process.” We realize that half of Fintech is financial, but we don’t invest in traditional, credit sensitive banks. Having managed money during the Financial Crisis, we learned firsthand how certain opaque and balance sheet intensive financials could go bankrupt or insolvent.
We prefer transaction-based businesses, generating recurring revenue, with sustainable margins, and significant cash flow. From our perspective, the perfect example of a FINTECH business is the secularly growing payments industry. Names like Visa or Mastercard Incorporated (NYSE:MA), that generate revenue and profit per swipe or transaction, without the underlying credit sensitivity or risk associated with that underlying line of credit.”
7. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 144
Uber Technologies, Inc. (NYSE:UBER) is an American mobility technology firm. On May 24, Uber Technologies, Inc. (NYSE:UBER) outlined its strategy to introduce 25,000 electric vehicles in India as part of its initiative called Uber Green. The company intends to collaborate with local fleet operators and enhance financing options to facilitate this plan. Alongside the addition of 25,000 electric cars to the Uber platform in India, Uber also aims to deploy 10,000 electric two-wheelers in Delhi by 2024 in collaboration with EV startup Zypp Electric.
According to Insider Monkey’s first quarter database, 144 hedge funds were bullish on Uber Technologies, Inc. (NYSE:UBER), compared to 135 funds in the earlier quarter.
RiverPark Large Growth Fund made the following comment about Uber Technologies, Inc. (NYSE:UBER) in its Q1 2023 investor letter:
“Uber Technologies, Inc. (NYSE:UBER): Uber was a top contributor in the quarter following better-than-expected 4Q results and 1Q guidance. Gross Bookings grew 19% year over year to $31 billion, driven by 31% Mobility Gross Bookings growth and 6% Delivery Growth Bookings growth. 4Q Adjusted EBITDA of $665 million, up $579 million year over year, significantly beating management’s $600-$630 million guidance. Management guided to continuing growth in 1Q for Gross Bookings (20%- 24% growth) and Adjusted EBITDA (of $660-$700 million).
UBER remains the undisputed global leader in ride sharing, with a greater than 50% share in every major region in which it operates. The company is also a leader in food delivery, where it is number one or two in the more than 25 countries in which it operates. Moreover, after a history of losses, the company is now solidly profitable with the potential for substantial margin expansion and free cash flow generation to come. We view UBER as more than just ride sharing and food delivery, but also as a global mobility platform with the ability to sell to its 131 million users (by comparison, Amazon Prime has 200 million members) and penetrate new markets of on-demand services, such as package and grocery delivery, travel, truck brokerage (the company had $1.5 billion in Freight revenue for 4Q22), and worker staffing for shift work. Given its $4 billion of unrestricted cash and $5 billion of investments, the company today has an enterprise value of $70 billion, indicating that UBER trades at 1.6x next year’s estimated revenue.”
6. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 155
Alphabet Inc. (NASDAQ:GOOG) is one of the most owned stocks by hedge funds. On July 6, Alphabet Inc. (NASDAQ:GOOG) disclosed that it has decided to postpone the launch of its first custom processor for Pixel smartphones by at least one year. The company had initially planned to release the chip in 2024, aiming to replace Samsung-made processors. However, Alphabet Inc. (NASDAQ:GOOG) has now revised its strategy and will continue to rely on Samsung for processors until 2025, after which it plans to introduce its fully customized chip.
According to Insider Monkey’s first quarter data, Harris Associates is the largest Alphabet Inc. (NASDAQ:GOOG) stakeholder, with 36.90 million shares worth $3.8 billion.
Like Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Meta Platforms, Inc. (NASDAQ:META), Alphabet Inc. (NASDAQ:GOOG) is one of the most owned stocks by hedge funds.
Oakmark Global Select Fund made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its second quarter 2023 investor letter:
“Alphabet Inc. (NASDAQ:GOOG) (U.S.) was the top contributor to the Fund’s performance for the quarter. Alphabet’s first-quarter search revenue growth accelerated slightly sequentially, which was notable given that advertising spending has decreased across the board. Management cited the company’s travel and retail segments for their strong performance in contrast to the declines experienced in the finance and in the media and entertainment businesses. Advertising spending has also stabilized at YouTube, and the focus on “shorts” has driven strong viewership growth. In the near term, YouTube’s investment in shorts may not generate significant revenue, but we believe its profitability will accelerate over time. Alphabet’s cloud business reached GAAP profitability this quarter, moving from a -12% margin this quarter last year to a 3% margin this quarter. On the AI front, Alphabet upgraded Bard to run on its more powerful PaLM language model, and Bard can now assist with coding and software development. CEO Sundar Pichai compared AI’s evolution to the transition from desktop to mobile computing a decade ago and said there is “a lot more to come” in terms of its consumer AI applications. CFO Ruth Porat revised 2023 capital expenditures guidance due to higher spending on data center construction and servers that will support AI developments in consumer products, advertiser tools and the cloud business. Porat reiterated that the company plans to continue to hold expense growth below revenue growth and that Alphabet’s cost-reduction initiatives should bear fruit later this year and into 2024. At Alphabet’s annual developer conference in May, the company showcased an impressive array of new AI-powered consumer tools, which will be rolled out over the course of the year. Investors reacted positively to these presentations, which highlighted the extent of AI innovation occurring at Alphabet.”
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Disclosure: None. 25 Most Owned Stocks by Hedge Funds is originally published on Insider Monkey.