In this article, we will be taking a look at the 20 most owned stocks by hedge funds now. To skip our detailed analysis of the current stock market news, you can go directly to see the 5 Most Owned Stocks by Hedge Funds Now.
Rate Cuts in June
As the US economy continues to settle down, financial professionals are continuing to keep a close eye on the inflation numbers and what they may imply for the markets and investors moving forward. Many are concerned about the Federal Reserve's next steps in 2024, particularly regarding interest rate cuts. Recent sentiments from the Fed have led many to believe that rate cuts may be on the way, but the progression of this process may be slower than most expected. On March 15, Peter Boockvar, the Chief Investment Officer at Bleakley Financial Group, joined CNBC's "The Exchange" to discuss recent developments in this area. Here are some of his comments:
"Based on his [Powell's] testimony, just last week, he seems to wanna cut, but he wants to do it slowly and carefully, as he said."
According to Boockvar, June is very much a possibility for a rate cut this year, particularly because it seems as though the Fed's Jerome Powell will want to position his rate cuts as far away as possible from the US Presidential election. The impact of this drawn-out strategy on the market may well be something to keep an eye on.
The NVIDIA GTC Conference
Apart from inflation news, investors should look at the position and performance of stocks in the market that have been performing well enough to keep rising. A good place to start on this front is to consider the performance of the most owned stocks by hedge funds in 2023 and beyond, such as Apple Inc. (NASDAQ:AAPL), salesforce.com, inc. (NYSE:CRM), and Eli Lilly and Company (NYSE:LLY). However, perhaps one of the most exciting stocks to look at right now is the semiconductor manufacturer NVIDIA Corporation (NASDAQ:NVDA). In the third week of March, the company is organizing its GTC Conference, bringing together tech professionals, developers, researchers, and engineers. The main topic at the 2024 GTC is going to be artificial intelligence, an area that is ripe for investment at present. On March 15, CNBC's Kristina Partsinevelos joined the "Halftime Report" to highlight the main things to expect from the Conference. Here's what she said:
"The first thing is gonna be any update of their [NVIDIA's] architecture for a new AI chip, the Blackwell B100. We'll wanna know specs, you know, how is the memory content, if the memory content surpasses AMD's latest chip, then that's gonna be a negative for AMD. Then we'll also wanna know, maybe, some details on the average selling price, because that'll affect margins... The second major point is this adoption across enterprise... And last, not least, inferencing. Inferencing is the second part of a Large Language Model, you shoot the training in and use the training data to answer queries. On the earnings call, Jensen Huang, the CEO, said that 40% of data center revenue actually came from inferencing."
These comments highlight the fact that the remainder of March is going to be exciting for the tech sector, particularly the AI space, so investors should keep a sharp eye on how the GTC Conference develops. Tech is an area that makes up a large part of the list of most owned stocks by hedge funds today. As such, our list below contains many of the fastest growing technology companies in the US, alongside some of the best American tech stocks to buy.
20 Most Owned Stocks by Hedge Funds Now
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Our Methodology
For our list of the most owned stocks by hedge funds now, we used Insider Monkey's hedge fund data for the fourth quarter and selected the top 20 stocks with the highest number of hedge funds holding stakes in them. The stocks are ranked based on this metric, from the lowest to the highest number. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by over 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.
Oracle Corporation (NASDAQ:ORCL) is a systems software company based in Austin, Texas. It offers products and services addressing enterprise information technology environments worldwide, such as cloud software applications.
Argus Research analysts hold a Buy rating on Oracle Corporation (NASDAQ:ORCL) as of March 14.
There were 100 hedge funds long Oracle Corporation (NASDAQ:ORCL) in the fourth quarter, with a total stake value of $6.4 billion.
Like Apple Inc. (NASDAQ:AAPL), salesforce.com, inc. (NYSE:CRM), and Eli Lilly and Company (NYSE:LLY), Oracle Corporation (NASDAQ:ORCL) is among the most owned stocks by hedge funds today.
Fisher Asset Management was the largest shareholder in Eli Lilly and Company (NYSE:LLY) at the end of the fourth quarter, holding 4.5 million shares.
Eli Lilly and Company (NYSE:LLY) is a healthcare company that discovers and develops human pharmaceuticals across the globe. It is based in Indianapolis, Indiana and is among the most owned stocks by hedge funds today.
An Overweight rating and $850 price target were maintained on Eli Lilly and Company (NYSE:LLY) on March 15 by JPMorgan analysts.
Eli Lilly and Company (NYSE:LLY) was seen in the portfolios of 102 hedge funds in the fourth quarter, with a total stake value of $11.2 billion.
“Eli Lilly and Company (NYSE:LLY) is a leading pharmaceutical company that develops diabetes, oncology, immunology and neuroscience medicines. The company generates over half of its revenue in the U.S. from its top-selling drugs Trulicity, Verzenio and Taltz. The company operates in a single business segment, Human pharmaceutical products.
We saw 103 hedge funds long JPMorgan Chase & Co. (NYSE:JPM) in the fourth quarter, with a total stake value of $9.1 billion.
JPMorgan Chase & Co. (NYSE:JPM) is a diversified banking company based in New York. It offers deposit, investment, and lending products, alongside cash management and payment services.
On March 13, RBC Capital analysts maintained a $185 price target and an Outperform rating on JPMorgan Chase & Co. (NYSE:JPM).
Carillon Tower Advisers said the following about JPMorgan Chase & Co. (NYSE:JPM) in its fourth-quarter 2023 investor letter:
“PNC Financial and JPMorgan Chase & Co. (NYSE:JPM) performed well due to more benign inflation data, which the market likely interpreted as a sign that a recession is now less likely to occur. Recall that historically speaking, banks are hyper-cyclical stocks and typically will trade lower if investors foresee a recession, because recessions tend to trigger loan losses.”
An Outperform rating and $610 price target were maintained on Adobe Inc. (NASDAQ:ADBE) on March 15 by BMO Capital analysts.
Adobe Inc. (NASDAQ:ADBE) is an application software company that offers products, services, and solutions enabling individuals, teams, and enterprises to create, publish, and promote content. It is based in San Jose, California.
In total, 105 hedge funds were long Adobe Inc. (NASDAQ:ADBE) in the fourth quarter, with a total stake value of $8.9 billion.
16. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 105
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a semiconductor manufacturer based in Taiwan. It manufactures integrated circuits and other semiconductor devices for testing and sale.
In the fourth quarter, 105 hedge funds were long Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), with a total stake value of $13.1 billion.
Bernstein analysts maintained a $150 price target and an Outperform rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) on March 11.
Polen Capital mentioned Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its fourth-quarter 2023 investor letter:
“The largest relative detractors to the Portfolio’s performance during the fourth quarter were Aon Plc, Unilever Plc, and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) (not owned). Though we do not currently own it in the Portfolio, Taiwan Semiconductor was one of the larger relative detractors from performance during the quarter due to its strong performance and comparatively greater index weight.”
On February 1, RBC Capital analysts maintained an Outperform rating and a $642 price target on Thermo Fisher Scientific Inc. (NYSE:TMO).
A total of 111 hedge funds were long Thermo Fisher Scientific Inc. (NYSE:TMO) in the fourth quarter, with a total stake value of $10.3 billion.
Thermo Fisher Scientific Inc. (NYSE:TMO) is a life sciences tools and services company. It offers life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products, alongside biopharma services.
Our hedge fund data for the fourth quarter shows 113 hedge funds long UnitedHealth Group Inc. (NYSE:UNH), with a total stake value of $11.2 billion.
On March 7, Bank of America Securities analysts maintained a Buy rating and $675 price target on UnitedHealth Group Inc. (NYSE:UNH).
UnitedHealth Group Inc. (NYSE:UNH) is a managed healthcare company based in Minnetonka, Minnesota. The company offers consumer-oriented health benefits, plans, and services.
Alibaba Group Holding Limited (NYSE:BABA) was seen in the 13F holdings of 116 hedge funds in the fourth quarter, with a total stake value of $3.6 billion.
Based in China, Alibaba Group Holding Limited (NYSE:BABA) is a broad-line retail company. It provides technology infrastructure and marketing reach to merchants, brands, retailers, and other businesses.
As of January 9, Benchmark analysts maintain a Buy rating and $128 price target on Alibaba Group Holding Limited (NYSE:BABA).
Baron Funds said this about Alibaba Group Holding Limited (NYSE:BABA) in its fourth-quarter 2023 investor letter:
“Alibaba Group Holding Limited (NYSE:BABA) is the largest retailer and e-commerce company in China. Alibaba operates shopping platforms Taobao and Tmall and owns 33% of Ant Group, which operates Alipay, China’s largest third-party online payment provider. Shares of Alibaba were down in the fourth quarter due largely to the delay of the previously announced spin-off of its cloud division. Quarterly results were roughly in line with Street expectations, with strength in profitability. We retain conviction that Alibaba is well positioned to benefit from the ongoing growth in online commerce and cloud development in China. While the company is seeing early progress in its efforts to re-invigorate customer engagement and retention as well as merchant investment initiatives, we believe this investment will likely take some time to flow through to accelerating earnings growth. As such, we remain investors but have reduced our position as we monitor further progress.”
Bill & Melinda Gates Foundation Trust was the largest shareholder in Berkshire Hathaway Inc. (NYSE:BRK-B) at the end of the fourth quarter, holding 19.9 million shares.
Berkshire Hathaway Inc. (NYSE:BRK-B) had 117 hedge funds long its stock in the fourth quarter, with a total stake value of $15.1 billion.
Based in Omaha, Nebraska, Berkshire Hathaway Inc. (NYSE:BRK-B) is a multi-sector holdings company. It engages in the insurance, freight, rail transportation, and utility businesses, and is among the most owned stocks by hedge funds right now.
Advanced Micro Devices, Inc. (NASDAQ:AMD) is another semiconductor company on our list of the most owned stocks by hedge funds. The company offers x86 microprocessors and graphics processing units, among more.
There were 120 hedge funds long Advanced Micro Devices, Inc. (NASDAQ:AMD) in the fourth quarter, with a total stake value of $15.2 billion.
Cantor Fitzgerald analysts maintained an Overweight rating and a $190 price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) on March 11.
Jackson Peak Capital mentioned Advanced Micro Devices, Inc. (NASDAQ:AMD) in its fourth-quarter 2023 investor letter:
“On the long side of the portfolio, a core theme we remain invested behind is the data center infrastructure buildout and AI chips arms race that we’ve discussed since our first letter in Q2. Some skepticism has crept into the market, and it’s understandable given the huge ramp in 2023. However, our research continues to suggest 2023 was the start of a multi-year platform shift. Value will accrue to varying segments of the AI value chain at different parts of the cycle. We continue to see value in the “boots on the ground” winners in the data center buildout (Vertiv, Modine Manufacturing, Celestica). Our positioning in AI semiconductor companies (NVDA and Advanced Micro Devices, Inc. (NASDAQ:AMD)) has ebbed and flowed given we are cognizant (perhaps too much so) that these names are crowded positions across investor style types. We’ve done well in these chip stocks since inception and NVDA is currently a long, and we’re trying to “let winners run” while using sizing to risk manage these names due to the market-wide positioning bias in semiconductors.”
At the end of the fourth quarter, 129 hedge funds were long Uber Technologies, Inc. (NYSE:UBER), with a total stake value of $8.7 billion.
Uber Technologies, Inc. (NYSE:UBER) is a passenger ground transportation company and among the most owned stocks by hedge funds this year. It develops and operates proprietary tech applications across the globe, offering ride-hailing services to customers worldwide.
On March 15, Piper Sandler analysts maintained an Overweight rating and a $92 price target on Uber Technologies, Inc. (NYSE:UBER).
Here's what RiverPark Advisors said about Uber Technologies, Inc. (NYSE:UBER) in its fourth-quarter 2023 investor letter:
“Uber Technologies, Inc. (NYSE:UBER): UBER was a top contributor in the quarter following better than expected 3Q23 earnings and 4Q23 guidance. Gross bookings of $35.3 billion were up 21% year over year. Mobility gross bookings of $17.9 billion grew 30% over last year driven by a combination of product innovation and driver availability. Delivery gross bookings of $16 billion were up 16% from last year and continued to be strong throughout the quarter. 1Q Adjusted EBITDA of $1.1 billion, up $576 million year over year, was better than management’s guidance of $1 billion, and the company generated $900 million of free cash flow, up from $358 million last year. Management guided to continuing growth in 4Q Gross Bookings (23.5% growth) and Adjusted EBITDA (of $1.2 billion).
Based in San Francisco, California, salesforce.com, inc. (NYSE:CRM) is an application software company. It offers customer relationship management tech, granting access to sales to store data, analytics and AI-powered insights, and more.
A Buy rating and $350 price target were maintained on salesforce.com, inc. (NYSE:CRM) on March 7 by Canaccord Genuity analysts.
We saw 131 hedge funds long salesforce.com, inc. (NYSE:CRM) in the fourth quarter, with a total stake value of $14.9 billion.
Apple Inc. (NASDAQ:AAPL) is a big tech company. It is renowned for its consumer electronic products like the iPhone and MacBook and is one of the most owned stocks by hedge funds today.
A $225 price target and Buy rating were maintained on Apple Inc. (NASDAQ:AAPL) on March 12 by Bank of America Securities analysts.
Apple Inc. (NASDAQ:AAPL) had 131 hedge funds long its stock in the fourth quarter, with a total stake value of $205.9 billion.
Holding 5.1 million shares in the company, Akre Capital Management was the largest shareholder in Mastercard Incorporated (NYSE:MA) at the end of the fourth quarter.
Mastercard Incorporated (NYSE:MA) is a transaction and payment processing services company. It is based in Purchase, New York.
Jefferies analysts maintained a Buy rating and a $485 price target on Mastercard Incorporated (NYSE:MA) on January 8.
In total, 141 hedge funds were long Mastercard Incorporated (NYSE:MA) in the fourth quarter, with a total stake value of $16.9 billion.
Visa Inc. (NYSE:V) was seen in the portfolios of 162 hedge funds in the fourth quarter, with a total stake value of $26.5 billion.
Based in San Francisco, California, Visa Inc. (NYSE:V) is another transaction and payment processing services company on our list of the most owned stocks by hedge funds. The company operates a transaction processing network enabling authorization, clearing, and settlement of payment transactions.
On March 8, Jefferies analysts maintained a $320 price target and Buy rating on Visa Inc. (NYSE:V).
Like Apple Inc. (NASDAQ:AAPL), salesforce.com, inc. (NYSE:CRM), and Eli Lilly and Company (NYSE:LLY), Visa Inc. (NYSE:V) was one of the most owned stocks by hedge funds in 2023.
