10 Largest Hedge Funds in The World And Their Favorite Stock Picks

Page 2 of 11

10. Lone Pine Capital (AUM: Almost $30 billion)

With great stock picking skills, Stephen Mandel’s Lone Pine Capital finds a place amongst world’s largest hedge funds of 2016. The fund follows a bottom up methodology for investing and the manager uses his judgement alone to decide the time for entry or exit into a particular stock. Starting with just $8 million, the fund has outperformed S&P index by double digits since inception though its outperformance margin shrunk in recent years. It employs a long/short hedge fund investing style in public equity markets across the globe.

Lone Pine Capital has a noticeable $1.1 billion investment in Amazon.com, Inc. (NASDAQ:AMZN) which is a favorite of most of the hedge funds we discuss in this article. Another top 10 position for Lone Pine is Microsoft Corporation (NASDAQ:MSFT) which has also become quite popular amongst the biggest hedge funds globally and accounts for 3.76% of the Lone Pine Capital’s portfolio. Microsoft Corporation (NASDAQ:MSFT) has done extremely well under the leadership of Satya Nadella successfully expanding into new areas such as cloud computing and shedding loss making businesses such as smartphones.

Lone Pine Capital 2015 Q2 Investor Letter

Page 2 of 11