Who Reigns Supreme? Revealing Hedge Funds' Top Favorite U.S. Stocks!

Hedge Fund Investors Often Comprise Pension Funds, High-Net-Worth Individuals, and University Endowments. In 2023, Hedge Funds Managed Assets Exceeded $4 Trillion, Setting a Historical Record.

For Most of the Past Decade, Hedge Fund Returns Have Been Lukewarm, But Interest in the Industry Has Rebounded in the Context of Rising Interest Rates. So Have Hedge Funds Recently Capitalized on the Big AI Trend? Is NVIDIA (NVDA.US) the Stock with the Highest Hedge Fund Ownership?

Overall, Microsoft (MSFT.US) Is the Most Popular Company Among Hedge Funds, with 874 Holding Shares in the Tech Giant.

Microsoft Has Taken the Lead in the AI Wave, Attracting Considerable Interest from Hedge Funds. As of June 24, 2024, Microsoft's Stock Price Has Risen Over 20%, Approaching Its All-Time High. Like Microsoft, a Significant Portion of Hedge Funds Hold Shares in Other Large Tech Stocks Such as Amazon (AMZN.US), Alphabet, and NVIDIA. Apple Ranks Fourth, with 36% of Hedge Funds Invested in the Company.

Based on net value, hedge funds have added over 26 million shares of Apple stock to their portfolios this quarter. Hedge fund enthusiasm for the company has grown ahead of Apple's anticipated introduction of Artificial Intelligence-enhanced features for its iPhone this year or by 2025.

In contrast, hedge funds have made their largest net reductions in NVIDIA and Alphabet. Scion Asset Management LLC, run by Michael Burry, is one of the hedge funds that sold Alphabet Class A shares and Amazon stock.

As large tech companies have played a significant role in driving stock market gains, hedge funds have broadly increased their exposure to companies involved in artificial intelligence technology over the past year. Another analysis by Goldman Sachs found that in August 2023, hedge funds’ total net market value investments accounted for 20% in Big Tech stocks. This marks a record level of risk exposure by hedge funds to these tech giants.

Beyond the tech behemoths, a substantial number of hedge funds also hold shares in Visa (V.US), JPMorgan Chase (JPM.US), and Berkshire Hathaway-A (BRK.A.US). Many of these financial giants have yielded strong returns over the past decade, with Visa averaging nearly a 19% annual return. Meanwhile, JPMorgan Chase has seen its average return exceed 16% during the same period.