Stocks Funds Love

March 4, 2020 James Heinsman Tops

One way to appraise whether a stock has the potential to bring the returns investors want to see is to consider where the best investors in the business put their money to work. Luckily for us, hedge funds, which are usually managed by some of the smartest and most successful investors around, are required by law to publish all the stocks they own in a filing called 13-F that they must submit to the Securities and Exchange Commission.

Most hedge funds invest in numerous different companies in order to minimize risk through diversity. But it is easy to see which stocks those managers like the best by scrutinizing which are at the top of their list in terms of percentage of managed assets.

Here is a list of the 5 favorite stocks right now of the hedge fund sector, in order from best-loved on down.

  1. Apple Inc.: Over 3200 funds hold Apple stock, and way over half of those include it in their top 10 holdings. Last quarter almost 16% of funds moved Apple into its top ten stakes.
  2. Microsoft Corp.: Almost 3300 funds include stock in Microsoft, with about 1650 of those placing Microsoft in its top ten investments. Among hedge funds, in particular, Microsoft is the favorite stock. Last quarter over 6% of funds added Microsoft to its top ten investments.
  3. Inc.: Less popular than Apple or Microsoft, Amazon is still beloved by about 2900 funds with 840 of those holding Amazon in its top ten. About 3.5% of funds moved Amazon into its top ten holdings.
  4. JP Morgan Chase & Co.: A little less popular than Amazon, JP Morgan Chase is held by a total of 2775 funds, with 746 putting this financial services company in its top ten holdings. This quarter was especially nice for JP Morgen, with 14.6% of funds moving it into its top ten tier of investments.
  5. SPDR S&P 500 ETF Trust: This is not really a company, but rather an electronically traded fund, a kind of investment that has recently been gaining in popularity. It is held by 2321 of all funds, with 701 placing it in their top ten holdings. A nice 16.2% of funds moved this ETF into its top ten investments.

In case you were worried where Google (Alphabet) went to, it is in the sixth position of beloved investments. Although a lot of funds live Alphabet, finding a home in 2750 funds, only 609 hold Google in its top ten investments. About 13% of funds brought Google into its top ten favorite holdings.

Google, SPDR S&P 500 ETF Trust,

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