In addition to interest rate sensitive financial names, a number of big name technology companies are in the spotlight today for various reasons.
In this article, let’s analyze why traders are talking about General Electric Company (NYSE:GE), Microsoft Corporation (NASDAQ:MSFT), Tesla Motors Inc (NASDAQ:TSLA), Mobileye NV (NYSE:MBLY), and Alphabet Inc (NASDAQ:GOOG). Let’s also use the latest regulatory data to determine how the smart money was positioned towards the five companies at the end of June.
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 the details here).
Count General Electric Company (NYSE:GE) as the latest multi-national to agree to invest billions into Argentina. Although investors are probably more accustomed to hearing major energy companies agreeing to invest billions to unlock Argentina’s shale potential, Reuters has reported that General Electric will invest an eleven-figure sum, $10 billion, into the South American country over the next decade. Specifically, GE will spend billions to construct several power plants that will add approximately 1 gigawatt of capacity to Argentina’s grid. Under new leadership, multi-national companies are finding the country increasingly hospitable for investment. That means good things for both GE and Argentina, as it means there will be more demand for GE’s energy. Warren Buffett’s Berkshire Hathaway owned over 10.5 million shares of General Electric Company (NYSE:GE) at the end of June.
Although it might have missed the boat on search and mobile, Microsoft Corporation (NASDAQ:MSFT) certainly doesn’t plan on missing the AI revolution. According to Bloomberg, Microsoft has developed Hanover, an AI machine-learning project that helps cancer-fighting doctors find the right/better treatments for their patients. Specifically, researchers at Oregon Health & Science University’s Knight Cancer Institute are using Hanover to find drug cocktails to fight acute myeloid leukemia. Given how big the healthcare sector is, Microsoft could have another growth sector if the product is successful/and improves over time. The smart money likes Microsoft. Of the around 750 funds that we track, 131 are long Microsoft Corporation (NASDAQ:MSFT) as of the end of the last quarter.
On the next page, we find out why Tesla Motors, Mobileye NV, and Alphabet are in the spotlight.