What is the right level Hedge funds and banks: Blue Chip Stocks—The fund manager’s friend amid global uncertainty risk for you?
With more than $3 trillion in assets under management, hedge funds aren’t just smart money—they’re big money. Although being included in a hedge fund portfolio isn’t a guarantee that a stock is a sure-fire winner, such institutional interest is an indication that big money thinks it’s a smart play.
WalletHub keeps track on the quarterly purchases, sales, and holds of more than 400 different hedge funds and creates a popularity ranking. Based on their most recent reporting, the top five blue-chip stocks at the moment have a decidedly high tech bent:
- Microsoft Corp. (MSFT): “continues its reign as the stock most popular with hedge funds. The Dow stock has staged a remarkable run over the past three years, delivering a total return of more than 30%.”
- Amazon.com (AMZN): “The e-commerce giant…is forecast to generate average annual earnings growth of 44% for the next half-decade.”
- Apple (AAPL): “Slower iPhone sales have knocked shares down from the 2018 highs that gave Apple a trillion-dollar market value. But hedge funds and Warren Buffett believe the company has plenty of growth left in it.”
- Facebook (FB): “might be feeling increasing heat from critics and would-be regulators, but hedge funds don’t much care. Such is the potential earnings power of the world’s largest social network.”
- Alphabet (GOOGL): “Analysts expect…average annual earnings growth of almost 18% for the next half-decade. That’s a red-hot pace for a company already worth around $830 billion.”
