Google Inc (GOOG) Is the New ‘Darling’ of Hedge Funds: Apple Inc. (AAPL), American International Group Inc (AIG)

Page 1 of 2

Google Inc (NASDAQ:GOOG) is the new darling of hedge funds. According to a report from Tobias Levkovich, analyst at Citigroup the search engine giant ranked number one in the list of stocks owned by the top 50 largest hedge funds and mutual funds during the fourth quarter of 2012. Google replaced Apple Inc. (NASDAQ:AAPL) as the favorite stock holding of the biggest investors in terms of the size of assets under management.

During the quarter, 16 of the 50 largest hedge funds own Google stock while 10 of the biggest hedge funds held Apple, and its rank dropped to number 4. American International Group Inc (NYSE:AIG) and News Corp (NASDAQ:NWSA) ranked third and fourth, respectively.

Google Inc (NASDAQ:GOOG)Google Inc (NASDAQ:GOOG) stock owners

Data from Nasdaq showed that the top five stockholders of the company include Jupiter Asset Management (22,182,000 shares), FMR Llc. (17, 513, 069 shares), Vanguard Group (11, 833,058 shares), State Street Corp. (10, 608, 679), and T. Rowe Price Associates (9, 457, 496 shares).

Some of the most prominent hedge fund managers that bought or increased stock holdings in Google based on the 13f filings with the Securities and Exchange Commission include: (See table below)

Why are investors more bullish on Google than Apple? Sameet Sinha, analyst at B Riley & Co said that the search engine giant is the only technology company benefiting from all the growth areas of the internet. Google generates revenue from display advertising, local, mobile, video, social, search among others.

Online advertising dominance

A report from eMarketer estimated that the digital ad spending in the United States in 2012 was approximately $37 billion, and Google Inc (NASDAQ:GOOG) accounts 41.3% of the total ad revenues. The firm projected that advertisers will spend a total of around $20 billion on Google by 2014. The search engine giant will continue to retain more than 43% market share of the U.S. advertising market until 2014.

In terms of mobile advertising revenue, eMarketer reported that Google dominates with 57% market share. Google is the king of mobile search with 93.3% market share of the $1.99 billion total ad revenue in the U.S. The firm estimated that Google’s mobile ad revenue this year would be around $3.98 billion and projected to increase around $6.32 billion in 2014.

On the other hand, Apple had a good performance only in devices. Right now, it is uncertain if the iPhone maker would be able to develop another winning device. Perhaps, it’s one of the main reasons why investors have a bearish position on Apple. According to reports, Apple Inc. (NASDAQ:AAPL) is developing an iWatch that would function like an iPhone and other TV related products. Jefferies technology analyst, Peter Misek speculated that Apple might launch its iTV by September this year.

Apple only accounts 3.1% market share in U.S. mobile revenue at $212.9 million this year. Its revenue is projected to increase at $376 million in 2014, which is far behind the Google Inc (NASDAQ:GOOG)’s estimated revenue in the future.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 9 Most Dangerous Countries for Tourists to Visit

Reign of Terror: The 10 Most Ruthless Politicians in History

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!