Investing

Hedge Fund Managers Are Loading Up on Top Technology Stocks

To say that hedge fund and mutual fund managers tend to follow the herd is quite an understatement, and it always has been. While publicly they sometimes seem reluctant to discuss their holdings, especially stocks they short, the reality is that managers tend to talk among themselves, as they run in the same circles. Often the discussions are centered around their portfolios and what is in them.

What a difference a year makes for professionals running big portfolios. A year ago, the consumer heavily relied on e-commerce and shifted their consumption from services to goods. Today, the reopening is well underway and the consumer is increasing services consumption (sometimes at the expense of goods), which is hitting e-commerce.

We were interested in the stocks that fund managers have been adding to their portfolios, and the five stocks that lead that category are very strong ideas for growth investors with a degree of risk tolerance. WalletHub had a list of the 25 most popular stocks with fund managers, and four of the top five saw even more buying over the past quarter.

While all five are rated Buy across Wall Street, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision. We listed the stocks in order of popularity.

Apple

This technology giant’s stock has been on a roll since the recent sell-off, and the new iPhone 13 is getting some big buzz. Apple Inc. (NASDAQ: AAPL) designs, manufactures and markets consumer electronics and has developed its own proprietary iOS and Mac OS X operating systems and related software platform/ecosystem.

Revenues are derived principally from the iPhone line of smartphones, hardware sales of the Macintosh family of notebook and desktop computers, iPad tablets and iPod portable digital music players. The company also realizes revenue from software, peripherals, digital media and services.

Shareholders receive a 1.45% dividend. Cowen has a $180 price target on the shares, and the consensus target is $190. Apple stock closed trading on Friday at $142.65 per share.