In this article, we explore the 10 Best Affordable Long Term Stocks to Buy According to Hedge Funds.
A shift is happening in institutional capital, and this is reshaping global equity allocations. This is according to HedgeCo.Net, a hedge fund data aggregator. Its analysis shows a softening demand for North America-focused hedge fund strategies, and that institutional allocators are increasingly steering capital toward Europe and Asia.
“This trend has been building for months,” stated the data aggregator, adding that, “in late 2025, wealthy investors in the US and Asia were canceling plans to allocate to US hedge funds and increasing exposure to Europe and the Middle East. The ‘why’ wasn’t a single macro variable; it was the growing belief that the balance of risks and opportunities was shifting.”
Some of the factors driving this rebalancing include mounting concerns over US trade policy uncertainty, dollar volatility, and concentration risk within mega cap technology names that have dominated the prior cycle. And, interestingly, this geographic rotation coincides with stretched domestic valuations.
Against this backdrop, hedge funds are upgrading their outlook for value-oriented stock selection strategies. For instance, Man Group’s Q1 2026 strategy outlook upgraded both Long-Biased Equity Long/Short and Market Neutral Equity Long/Short to positive. The firm cited elevated dispersion and lower single-stock correlations that favor active managers over passive beta.
It noted that while artificial-intelligence-related valuations remain susceptible to “nebulous forecasts,” the broader opportunity set for fundamental stock picking has expanded significantly. And Goldman Sachs analysts project this value tilt will persist if economic momentum holds. They also highlighted that low-valuation shares outperformed higher-multiple peers with a 15% advance during the final six months of 2025.
In this light, this article highlights several affordable, value stocks that institutions are piling into.
Our Methodology
To identify the 10 Best Affordable Long Term Stocks to Buy According to Hedge Funds, we used the Finviz stock screener to filter for companies trading at forward price-to-earnings ratios below 15, and with five-year revenue and earnings growth rates of at least 15%. We further limited the selection to stocks with market capitalizations above $2 billion and then analyzed Q3 2025 13F filings from Insider Monkey’s database to identify which of these names had the highest levels of hedge fund ownership. The final list is ranked in ascending order by the number of hedge fund holders in the third quarter of 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Note: The forward P/E data is as of February 5, 2026.
Best Affordable Long Term Stocks to Buy According to Hedge Funds
10. Eldorado Gold Corporation (NYSE:EGO)
Number of Hedge Fund Holders: 26
Forward P/E: 8.12
Eldorado Gold Corporation (NYSE:EGO) is one of the best affordable long term stocks to buy according to hedge funds. On February 4, S&P Global Ratings placed Eldorado Gold Corporation (NYSE:EGO) on CreditWatch positive, citing robust gold prices and progress at its nearly completed Skouries copper-gold project in Greece, which is set to start commercial production by mid-2026. With spot gold around $5,000 per ounce, far above S&P’s $3,300 assumption for 2026, the company has seen stronger cash flow, supported by a cash balance exceeding $1 billion.
Earlier, Eldorado announced a C$3.8 billion all-stock acquisition of Foran Mining, adding the nearly finished McIlvenna Bay project in Saskatchewan to its portfolio. The mine, 85% complete, is expected to produce copper, gold, silver, and zinc over an 18-year reserve life. Eldorado shareholders will own 76% of the combined company, with Foran shareholders holding 24%. The deal is expected to close in Q2 2026, pending approvals.
Although Eldorado’s stock initially fell 8.2% on the announcement, the company expects substantial long-term gains. By 2027, combined gold-equivalent production could rise more than 80% to around 900,000 ounces, with projected EBITDA of $2.1 billion and free cash flow of $1.5 billion. S&P anticipates adjusted debt-to-EBITDA to drop below 1.0x, with strong cash generation once Skouries and McIlvenna reach full production, even if gold prices moderate.
Eldorado Gold Corporation (NYSE:EGO) and its subsidiaries mine, explore, develop, and sell minerals in Turkey, Canada, and Greece, with gold as its primary product, along with silver, lead, and zinc.
9. SouthState Bank Corporation (NYSE:SSB)
Number of Hedge Fund Holders: 32
Forward P/E: 11.35
SouthState Bank Corporation (NYSE:SSB) is one of the best affordable long term stocks to buy according to hedge funds. On January 26, Stephens analyst Russell Gunther maintained an Overweight rating on SouthState Bank Corporation (NYSE:SSB) and raised the price target to $120 from $110. The analyst cited SouthState’s core pre-provision net revenue (PPNR) of $323.5 million, noting it “exceeded consensus estimates by 1.5%, or $0.03 per share.” Gunther said this PPNR performance came on the back of stronger net interest income and correspondent banking/capital markets fees. But this effect was partially offset by higher expenses.
The analyst also noted that SouthState’s net interest income grew 2.7% quarter over quarter, excluding purchase accounting adjustments. And that the bank’s core net interest margin increased two basis points sequentially to 3.86%. This growth, Gunther said, was above consensus estimates. As a result, Gunther raised his 2026 PPNR estimate for SouthState by 1.5%. He noted the bank’s differentiated fee income momentum as a contributing consideration.
Separately, on January 23, Raymond James raised its price target on SouthState shares to $120 from $115 and maintained a Strong Buy rating. The move was a reaction to SouthState’s December-ending quarter results.
Raymond James said these results were well ahead of its expectations as well as consensus estimates on core earnings per share and pre-provision revenue basis. The firm noted the bank’s performance reflects 39.42% revenue growth over the past twelve months.
SouthState Bank Corporation (NYSE:SSB) is a regional financial services company headquartered in Florida, and operates through its subsidiary SouthState Bank, N.A. The bank provides consumer, commercial, mortgage, and wealth management solutions to over 1.5 million customers across the Southeast and beyond.
