10 Large Cap Stocks the Top Hedge Funds Are Buying Now
While chasing what portfolio managers own isn’t always the best idea, many people have made a lot of money by simply mimicking what legendary investors like Warren Buffett hold.
While chasing what portfolio managers own isn’t always the best idea, many people have made a lot of money by simply mimicking what legendary investors like Warren Buffett hold. With the market starting to exhibit an increase in volatility, as February was the first down month in almost a year and a half, we thought we would take a look at where the so-called smart money is headed as we get ready to close out the first quarter of 2018.
In a new Jefferies research report, outstanding strategist Steven DeSanctis has started to look at the holdings of hedge funds, as opposed to just reviewing long-only mutual funds. One reason is simple: The holdings for hedge funds come out earlier than those for mutual funds and allow the analysts to get an earlier look at how they are positioned.
We were particularly interested in the larger cap stocks that had the biggest percentage increase in ownership, and the Jefferies research had the data. It’s an interesting collection of well-known companies, all of which appear to be well positioned for the future. They are listed by the highest to lowest percentage of increase in ownership.
[nativounit]
- Brighthouse Financial Inc. (NYSE: BHF), 13.4% increase
- Aetna Inc. (NYSE: AET), 6.2% increase
- NXPI Semiconductors N.V. (NASDAQ: NXPI), 5.7% increase
- PG&E Corp. (NYSE: PCG), 5.2% increase
- Time Warner Inc. (NYSE: TWX), 5.1% increase
- Monsanto Co. (NYSE: MON), 4.9% increase
- Electronic Arts Inc. (NASDAQ: EA), 3.4% increase
- Regeneron Pharmaceuticals Inc. (NASDAQ: REGN), 3.3% increase
- Micron Technology Inc. (NASDAQ: MU), 3.3% increase
- Allergan PLC (NYSE: AGN), 3% increase
There you have it, the 10 large-cap stocks that the top hedge funds have added to their portfolios. Some are clearly value-rated purchases, while others have potential catalysts that could start driving the share price higher. All the companies look like good additions for investors that like large-cap growth and have a reasonable amount of risk tolerance.
[recirclink id=446027]
[wallst_email_signup]
Contact [email protected] for any questions or corrections.
Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad, diverse career, including a stint as creative services director at an NBC affiliate in Austin, Texas, gives him unique insight into the financial industry.
Lee Jackson's journey in the financial industry spans more than 30 years, including nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career spanned pivotal sell-side Wall Street events, from the dot-com rise and bubble to the Long-Term Capital Management debacle, 9/11, and the Great Recession of 2008. This reflects his resilience and adaptability amid market volatility.
Lee Jackson’s practical financial industry experience, gained through a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing across various platforms. This unique combination allows him to shed light on the intricacies of Wall Street in a way only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.
Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.
