The largest hedge funds get so big by beating the market. That's why investors pay attention to the stocks these big hedge funds are buying.
When stock picking, hedge funds have huge piles of money to put to work. Hedge funds attract top managers, and wealthy individuals and pensions funds pile into them.
Investors are provided a look at what hedge funds are buying and selling four times a year.
Hedge funds with more than $100 million in assets are required to file quarterly reports with the Securities and Exchange Commission (SEC). Filed within 45 days at the end of each quarter, these 13F filings contain information about the investment manager and a list of their recent investment holdings.
Here's a look at what the top 50 largest hedge funds by assets under management have been buying. One key holding is up a blistering 94.51% year to date...
10 Stocks the Largest Hedge Funds Are Investing In
Largest Hedge Funds' Stocks to Buy, No. 1: Apple Inc. (Nasdaq: AAPL) was the largest holding among the top 50 hedge funds at the end of Q1 2015, according to FactSet. It constituted 1.8% of all holdings. The iPhone maker, at $129.47, is up 17.26% year to date. That comfortably outpaces the broad market, which is sporting a modest 2.49% advance. The tech titan is sitting on a cash stash of $194 billion, which can be used for capital investments, stock buybacks, and dividend hikes. Wall Street's median 12-month price target on Apple shares is $150.
Largest Hedge Funds' Stocks to Buy, No. 2: Actavis Plc. (NYSE: ACT) was the most widely held stock among the top 50 hedge funds at Q1's close, data from FactSet revealed. Twenty-eight hedge funds maintained a position in the manufacturer of over-the-counter, generic, brand, and biosimilar pharmaceuticals. Overall, the Ireland-based company was the third-largest holding among the top 50, accounting for 1.3% of all equity holdings. Actavis was also the top holding at three hedge funds. Shares are up 16.88% year to date.
Largest Hedge Funds' Stocks to Buy, No. 3: QUALCOMM Inc. (Nasdaq: QCOM) was the top purchase collectively among 50 funds in Q1, according to FactSet. The cumulative market value purchased during the January to March quarter was roughly $2.1 billion. QCOM was the 16th-largest holding among the group of 50 at the end of Q1 and was one hedge fund's top holding. Shares of this diversified tech titan are off 8.85% year to date.
Largest Hedge Funds' Holdings, No. 4: Aena SA (BME: AENA) was the top new position in terms of market value among the top 50 hedge funds in Q1, FactSet data shows. The market valued purchases of shares in the Spanish airport operator, which went public on Feb. 11, at about $1.2 billion.
Energy stocks were also among top holdings at several of the largest hedge funds at the end of Q1 2015:
- Devon Energy Corp. (NYSE: DVN) was No. 1 holding at Citadel Advisors LLC.
- Phillips 66 (NYSE: PSX) was the top holding at D.E. Shaw & Co. LLP.
- Energy Transfer Partners LP (NYSE: ETP) was the No. 1 position at Kayne Anderson Capital Advisors LP.
- NRG Energy Inc. (NYSE: NRG) was the top holding at Carlson Capital LP.
- Williams Companies Inc. (NYSE: WMB) was the No. 1 position at both Soroban Capital LP and Corvex Management LP.
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And the hedge fund stock that is up 94.51% year to date: Netflix Inc. (Nasdaq: NFLX). That's good for Coatue Management LLC -- NFLX represented 59.5% of the New York City-based global investment manager's portfolio at the end of Q1.
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Related Articles:
- The Wall Street Journal: Market Data
- FactSet: Hedge Fund Ownership
- SEC.gov: Form 13F-Reports Filed By Institutional Managers