Market indices are in the green today following a better-than-expected jobs report, which helped the stocks to recover from Brexit-triggered losses.
Several stocks are on investors’ radar today, including Intel Corporation (NASDAQ:INTC), Advanced Micro Devices, Inc. (NASDAQ:AMD), Aetna Inc (NYSE:AET), Humana Inc (NYSE:HUM) and McDonald’s Corporation (NYSE:MCD). Let’s take a closer look at the companies in question and see how funds in our database are positioned towards these companies.
Through extensive research, we determined that imitating some of the picks of hedge funds and other institutional investors can help generate market-beating returns over the long run. The key is to focus on the small-cap picks of these investors, since they are usually less followed by the broader market and are less price-efficient. Our backtests that covered the period between 1999 and 2012, showed that following the 15 most popular small-caps among hedge funds can help a retail investor beat the market by an average of 95 basis points per month (see more details here).
Ratings Update for Intel and AMD
Intel Corporation (NASDAQ:INTC) and Advanced Micro Devices, Inc. (NASDAQ:AMD) are trending today following a ratings update from global asset management firm Sanford C. Bernstein. The firm upgraded Intel to “Market Perform” from “Underperform”. On the other hand, Intel’s rival AMD was downgraded to “Underperform” from “Market Perform”. Shares of Intel are up by more than 2% so far today, while AMD’s stock opened lower but has recovered and is over 1% in the green. A total of 54 funds from our database were long Intel Corporation (NASDAQ:INTC) at the end of the first quarter. Among them, Natixis Global Asset Management’s Harris Associates owns more than 43.69 million shares of the company. On the other hand, 13 funds were bullish on Advanced Micro Devices, Inc. (NASDAQ:AMD) at the end of the first quarter of 2016.
On the next page, we are going to discuss the developments that have put Aetna, Humana and McDonald’s in the spotlight.