Investing

Technology Still Dominates the Current Top 10 Holdings in Hedge Funds

Time Warner
The company is still being pursued by AT&T Inc. (NYSE: T) and a final ruling could come as soon as today. Time Warner Inc. (NYSE: TWX) operates as a media and entertainment company in the United States and internationally. It has three segments: Turner, Home Box Office and Warner Bros. The Turner segment creates and programs branded news, entertainment, sports, and kids multiplatform content for consumers. It operates about 175 channels in 200 countries and territories.

The Home Box Office segment provides premium pay and basic tier television, and video content services including HBO and Cinemax. HBO also operates HBO Now, a video content service, and sells original programming through physical and digital formats. And the division licenses original programming through international television networks and video content services.

The Warner Bros. segment produces, distributes, and licenses television programming and feature films. It distributes digital and physical home entertainment products; and produces and distributes games, as well as licenses consumer products and brands.

Time Warner Inc. serves cable system operators, satellite service distributors, telephone companies and virtual multichannel video programming distributors, as well as digital distributors.

Shareholders are paid a 1.7% dividend. The Wall Street consensus price target for the company is $104.43. The shares closed Monday at $96.17.

Netflix
This Wall Street darling and FANG constituent could offer solid upside. Netflix Inc. (NASDAQ: NFLX) is the world’s leading Internet television network with more than 120 million global subscribers in over 190 countries enjoying in excess of 125 million hours of TV shows and movies per day, including original series, documentaries and feature films. Members can watch as much as they want, anytime, anywhere, on nearly any internet-connected screen. Netflix subscribers can play, pause and resume watching, all without commercials or commitments.

Netflix is available on virtually any device that has an internet connection, including personal computers, tablets, smartphones, smart TVs and game consoles. The service automatically provides the best possible streaming quality based on the available bandwidth. Many titles, including Netflix original series and films, are available in high-definition with Dolby Digital Plus 5.1 surround sound and some in Ultra HD 4K. Advanced recommendation technologies (for as many as five user profiles) help members discover entertainment they’ll love.

The consensus price objective across Wall Street is set at $334.95. The shares closed Monday at $361.45.

Visa
This top credit card issuer is becoming a huge leader in digital pay. Visa Inc. (NYSE: V) operates the world’s largest retail electronic payments network. The company provides processing services and payment product platforms, including consumer credit, debit, prepaid and commercial payments, that are offered under Visa and related brands. According to Nielsen estimates, the company is the largest global credit network (as measured by volume) and the second largest global debit network.

Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable financial institution customers to offer consumers more choices: pay now with debit, pay ahead of time with prepaid or pay later with credit products.

Shareholders are paid a small 0.7% dividend. The Wall Street consensus price target is posted at $143.76. The shares closed Monday at $133.91.

Aetna
This top health care provider has traded sideways February and looks poised to break out. Aetna Inc. (NYSE: AET) is one of the nation’s largest managed care organizations, covering roughly 24 million members. The company focuses on three main business segments: health care (health insurance, dental, behavioral health and pharmacy benefit products), group insurance (including life, disability and long-term care insurance products) and large-case pension (a legacy business that is largely in runoff).

Aetna has agreed to be purchased by drugstore chain CVS in a massive $69 billion acquisition. While there has been some concerns over regulatory approval, top CVS management has confirmed recently it is making solid progress with state regulators, and they expect the deal to be closed later this year.

Shareholders are paid a small 0.81% dividend. The Wall Street consensus is $203.19. The shares closed Monday at $181.01.

Twenty-First Century Fox
This company is being pursued by Comcast and Disney. Twenty-First Century Fox Inc (NASDAQ: FOXA) is a diversified international media and entertainment company with balanced and high-growth assets.

The company’s operating segments include: filmed entertainment (20th Century Fox), TV (the Fox broadcast network and owned and operated stations) and cable networks like the Fox News Channel and FX. The company also has a significant equity investment in direct-to-home satellite TV provider Sky.

Shareholders are paid a 0.9% dividend. The Wall Street consensus price objective is at $40.40. The shares closed Monday at $40.13.

Bank of America
The company posted solid first-quarter results. Bank of America Corp. (NYSE: BAC) is a ubiquitous presence in the United States providing various banking and financial products and services for individual consumers, small and middle market businesses, institutional investors, corporations and governments in the United States and internationally. It operates 5,100 banking centers, 16,300 ATMs, call centers, online and mobile banking platform.

Bank of America’s earnings rose in the first quarter, and the company said it plans to open 500 new branches as it issued upbeat financial results that topped Wall Street forecasts. The bank reported net income of $6.9 billion, or 62 cents per share, beating the predictions of $6.3 billion and 59 cents from financial analysts surveyed by S&P Capital IQ. Revenue for the January-to-March period totaled $23.1 billion, a rise from $22.2 billion for the same stretch last year, and higher than the analysts’ forecast.

Bank of America investors are paid a small 1.6% dividend. The Wall Street consensus price target is posted at $34.76. The shares closed Monday at $30.06.

There you have it — the top 10 stocks that hedge funds own right now. One company whose fall out of the top 10 comes as a surprise is Apple Inc. (NASDAQ: AAPL), which slid to No. 18 from No. 8 this year. All of these large-cap behemoths make good sense for long-term growth accounts with a degree of risk tolerance.