5 Stocks Hedge Funds Love: Starbucks Corporation (SBUX), Barrick Gold Corporation (USA) (ABX), Williams Companies, Inc. (WMB)

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There were four investors with Barrick Gold Corporation (USA) (NYSE:ABX) in their top ten, and sixteen major investors upping their stakes during the fourth quarter. Major hedge fund investors upping their stakes include First Eagle Investment and Vinik Asset, whereas billionaires D.E. Shaw and Jim Simons are also major shareholders.
Assuming the gold bull market continues, thanks to global economic uncertainty and loose monetary policy by central banks, gold miners should perform well over the interim. The gold miner has a relatively geographically diverse product stream, with around 40% of reserves in North America, 40% in South American and 10% in Australia and Africa each. The gold miner also pays a 2.7% dividend yield.

Don’t be fooled

It appears that hedge funds and other notable investors are encouraged by the initiatives that Williams has made to return capital to shareholders, a steady income play with an almost 4% dividend yield. As well, Advance is a solid play on the rising age of cars on the road, over 11 years old. Advance is the biggest and quite possibly the best auto retailer (read more about why). Valeant could prove to be a robust growth play in the pharma space, while Starbucks Corporation (NASDAQ:SBUX) is undoubtedly a solid play on the coffee industry. What I believe to be one of the best bets among the five is the gold miner, Barrick Gold Corporation (USA) (NYSE:ABX). This gold company should continue to perform well amidst low interest rates and an uncertain global economy.

The article 5 Stocks Hedge Funds Love originally appeared on Fool.com and is written by Marshall Hargrave.

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