If there are two constants on Wall Street, one is that portfolio managers tend to talk among themselves, and they also do what is called “talking their book,” which is getting out in a public forum to discuss a trade they have on. While both are totally legal, it can contribute to trades being crowded. At 24/7 Wall St., we like to show our readers the most widely held stocks by the hedge fund universe, as it gives a basic overview as to what they are thinking structurally.
A recent report from FactSet dug into the holdings of the hedge fund world and came up with the 50 top positions that the portfolio managers are holding now. Far from being an eclectic group of “hidden gems,” they are some of the best-run and most prolific large cap companies around. Some may be no surprise at all, and some may raise an eyebrow or two.
Time Warner Cable
Time Warner Cable Inc. (NYSE: TWC) is the top position at hedge funds with a stunning 29 funds holding the stock. It was purchased by Charter Communications in a massive $54 billion deal that was announced last year but has yet to close. The company is among the largest providers of video, high-speed data and voice services in the United States, connecting 16 million customers to entertainment, information and each other.
Time Warner Cable Business Class offers data, video and voice services to businesses of all sizes, cell tower backhaul services to wireless carriers and enterprise-class, cloud-enabled hosting, managed applications and services. Time Warner Cable Media, the advertising sales arm of the company, offers national, regional and local companies innovative advertising solutions.
Time Warner Cable is essentially in a holding pattern as the $195 per share Charter offer is still being scrutinized by the Federal Communication Commission. Most on Wall Street feel the deal will get done, and executives said last year they felt that final FCC approval would come in the first quarter of this year.
Investors receive a 1.57% dividend. The Thomson/First Call consensus price target is $199.89, and shares were trading midday Tuesday at $190.27.
Apple Inc. (NASDAQ: AAPL) evolutionized personal technology with the introduction of the Macintosh in 1984, but UBS recently decided it was time to be removed after a long stay on the Q-GARP list. Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch and Apple TV. Its four software platforms — iOS, OS X, watchOS and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay and iCloud.
The stock has been hit hard since posting all-time highs last summer. Many managers may have added the blue chip technology giant in the fourth quarter as the stock dropped over 20% from the 2015 summer highs. A whopping 24 hedge funds own the stock now.
Apple investors receive a 2.17% dividend. The consensus price target is $135.92. Shares were trading Tuesday $95.34.
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