A new study sheds light on which companies hedge fund investors have been putting their faith in—as well as their $3 trillion in assets.
WalletHub analyzed the second-quarter filings of over 400 of the largest hedge funds to identify their biggest holdings, new positions, recent exits and other relevant data.
"It makes sense that people pay attention to what hedge fund managers are buying, selling and holding, especially during these times of economic uncertainty," WalletHub said in the report. "Hedge funds’ quarterly public disclosures, mandated by the Securities and Exchange Commission, give us a window into their recent activity."
Here, in ascending order, are the companies from this past summer that topped the holdings lists of the largest 400 hedge funds:
10. Charter Communications Inc. (CHTR)
Headquartered in Stamford Conn., Charter Communications Inc. is a telecommunications and mass media company operating under the brand name Spectrum. Despite Q2 2021 revenues of $12.8 billion—an increase of 9.5% on a year over year (YOY) basis—hedge fund managers were not stampeding to invest in more of this company's stock, which did not change position from the previous quarter WalletHub examined.
9. The Coca-Cola Company (KO)
The Coca-Cola Company is a multinational beverage corporation headquartered in Atlanta. Although the company has topped consensus revenue estimates three times over the last four quarters, and posted Q2 revenues that were 10% higher than expected, hedge fund managers remained unimpressed, with no change in position from the previous quarter.
8. Visa Inc. (V)
Visa Inc., is a global financial services corporation headquartered in Foster City, Calif. In spite of an increase in online pandemic shopping while consumers hunkered down at home, the company reported a drop in Q2 YOY revenue. Hedge fund managers are sticking by Visa, but with no change in position from the previous quarter.
7. Bank of America Corp. (BAC)
Founded in San Francisco, the Bank of America Corporation is a multinational financial services holding company and investment bank headquartered in Charlotte, N.C. Even though this company’s stock is the #2 pick of investor Warren Buffett, fellow investors are parking their money elsewhere. BAC stock was down from the position it held in the previous quarter.
6. Facebook Inc. (FB)
Led by co-founder and CEO Mark Zuckerberg, Facebook Inc. is a multinational technology company headquartered in Menlo Park, Calif. Facebook saw 56% growth in Q2 revenue YOY, but lost favor with hedge fund managers, falling from the position it held in the previous quarter.
5. American Express Company (AXP)
A multinational financial services company founded in New York City in 1850, the American Express Company is one of the 30 components of the Dow Jones Industrial average. This past summer, American Express crushed Q2 earnings estimates, wotj an increase of 866% to $2.80 per share. Revenue was up 33% to $10.24 billion. Hedge fund managers continued to invest in it. The company was up from the position it held in the previous quarter.
4. Alphabet Inc. (GOOG)
The parent company of Google LLC, Alphabet Inc. is a multinational technology conglomerate holding company headquartered in Mountain View, Calif. The company delivered a Q2 surprise with quarterly earnings of $27.26 per share compared with $10.13 a year ago. Hedge funds love this high-performing stock, which was up from the position it held in the previous quarter.
3. Amazon.com Inc. (AMZN)
Headquartered in Seattle, Amazon.com Inc. is one of the Big Five multinational technology companies that also include Google, Apple, Microsoft and Facebook. Its Q2 2021 revenue grew by only 27% YOY to $113.08 billion compared with Q2 2020, when sales skyrocketed 41% YOY. That hasn’t deterred hedge funds from continuing to invest in it, with the company up from the position it held the previous quarter.
2. Microsoft Corp. (MSFT)
Founded in Albuquerque, N.M., by Bill Gates and Paul Allen, the multinational technology corporation now makes it headquarters in Redmond, Wash. This past summer, Microsoft stock exceeded analysts’ expectations, with revenue growing 17% on an annualized basis, up from 12% growth in the prior quarter. The company was up from the position it held in the previous quarter.
1. Apple Inc. (AAPL)
Founded in 1976, this multinational technology corporation is headquartered in Cupertino, Calif., and is currently led by CEO Tim Cook. Thanks to the pandemic, which prompted increased consumer purchases of Apple products for remote work and home entertainment, the company’s Q2 2021 revenue hit an all-time record, with sales up 54% over last year. That's why Apple remains the top pick of the largest hedge funds in the business, a position it also held in the previous quarter.
The full report can be viewed here.
