In this article, we discuss 10 large-cap stocks to buy according to Anand Parekh’s Alyeska Investment Group.
In 2008, Anand Parekh founded Alyeska Investment Group. He is a hedge fund manager based in Chicago who caters to a neutral strategy, applying both long and short term positions. Up till 2002, Parekh used to work at Deutsche Bank and later became the global head of equities at Citadel Investment Group. His degree is in the fields of Mathematics and English from University of Michigan.
Some of the main sectors the Alyeska Investment Group invests in include Services, Technology, Healthcare, Financials, and Consumer Goods. The hedge fund’s 13F portfolio has over $8.49 billion in managed securities, as of the second quarter.
Some of the top stocks in the investment portfolio of Alyeska Investment Group at the end of the second quarter of 2021 were Mastercard Incorporated (NYSE: MA), Morgan Stanley (NYSE: MS), Adobe Inc. (NASDAQ: ADBE), and FedEx Corporation (NYSE: FDX), among others discussed in detail below. The top five holdings comprise around 7.9% of the portfolio. The total value of the holdings is up $746 million (1.13%) when compared to the first quarter of the year.
Photo by Dimitris Chapsoulas on Unsplash
Our Methodology
With this context in mind, here is our list of 10 large-cap (market capitalization of over $10 billion) stocks to buy according to Anand Parekh’s Alyeska Investment Group. Although these stocks were listed according to the investment portfolio of Anand Parekh’s Alyeska Investment Group at the end of the second quarter of 2021, the basic business fundamentals and analyst ratings for each are discussed alongside other details about the companies to provide potential investors with deeper insight so they can make more informed investment decisions. Data from the 873 hedge funds tracked by Insider Monkey was also used to gauge hedge fund sentiment around each stock.
Why do we care about hedge fund fund activity? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
10 Large-Cap Stocks to Buy According to Anand Parekh’s Alyeska Investment Group
10. Spotify Technology S.A. (NYSE: SPOT)
Alyeska Investment Group’s Stake Value: $31.69 million
Percentage of Alyeska Investment Group’s 13F Portfolio: 0.37%
Number of Hedge Fund Holders: 48
Incorporated in 2006 and located in Luxembourg, Luxembourg, Spotify Technology S.A. (NYSE: SPOT) ranks 10th on our list of 10 large-cap stocks to buy according to Anand Parekh’s Alyeska Investment Group. Spotify Technology S.A. (NYSE: SPOT) focuses on audio streaming solutions internationally. Latest filings by Alyeska Investment Group reveal that the hedge fund owned 115,000 shares in the firm at the end of June 2021 that are worth $31.69 million, representing 0.37% of the portfolio. The fund initiated a new position in the virtual music platform in the second quarter of 2021.
On September 7th, with a price target of $340, KeyBanc gave Spotify Technology S.A. (NYSE: SPOT) an Overweight rating. The second quarter revenue of Spotify Technology S.A. (NYSE: SPOT) was $2.76 billion compared to the first quarter’s $2.52 billion. The second quarter’s EPS was $-0.12, compared to the estimated $-0.49.
As of the second quarter, 48 hedge funds out of the 873 funds tracked by Insider Monkey held stakes in the company.
Like Mastercard Incorporated (NYSE: MA), Morgan Stanley (NYSE: MS), Adobe Inc. (NASDAQ: ADBE), and FedEx Corporation (NYSE: FDX), Spotify Technology S.A. (NYSE: SPOT) is one of the notable stocks gaining hedge funds’ attention in 2021.
9. Activision Blizzard, Inc. (NASDAQ: ATVI)
Alyeska Investment Group’s Stake Value: $3.4 million
Percentage of Alyeska Investment Group’s 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 78
Ranking 9th on our list of 10 large-cap stocks to buy according to Anand Parekh’s Alyeska Investment Group, Activision Blizzard, Inc. (NASDAQ: ATVI) is the biggest American video game developer, known for Overwatch, Call of Duty, Hearthstone, World of Warcraft, Diablo, and Candy Crush. Latest filings by Alyeska Investment Group reveal that the hedge fund owned 35,675 shares in the firm at the end of June 2021 that are worth $3.4 million, representing 0.04% of the portfolio. Alyeska Investment Group dropped investment in the gaming group by 94% compared to the first quarter of 2021.
On August 13th, Citi set Activision Blizzard, Inc. (NASDAQ: ATVI)’s target price to $105 with a Buy rating. With a stock price of $79.56, the price dipped 13.93% in the last 6 months. The second quarter revenue of Activision Blizzard, Inc. (NASDAQ: ATVI) was $2.3 billion compared to the first quarter’s $2.28 billion. The second quarter’s EPS was $0.91, compared to the estimated $0.75.
As of the second quarter, 78 hedge funds out of the 873 funds tracked by Insider Monkey held stakes in the company.
8. McDonald’s Corporation (NYSE: MCD)
Alyeska Investment Group’s Stake Value: $39.5 million
Percentage of Alyeska Investment Group’s 13F Portfolio: 0.46%
Number of Hedge Fund Holders: 66
Established in 1940 and headquartered in Chicago, Illinois, McDonald’s Corporation (NYSE: MCD) ranks 8th on our list of 10 large-cap stocks to buy according to Anand Parekh’s Alyeska Investment Group. McDonald’s Corporation (NYSE: MCD) is a restaurant, famous for its Big Mac burger. Latest filings by Alyeska Investment Group reveal that the hedge fund owned 170,789 shares in the firm at the end of June 2021 that are worth $39.5 million, representing 0.46% of the portfolio. The fund initiated a new position in the fast-food joint in the second quarter of 2021.
On July 29th, Wedbush elevated McDonald’s Corporation (NYSE: MCD)’s target price from $265 to $270 with an Outperform rating.
As of the second quarter, 66 hedge funds out of the 873 funds tracked by Insider Monkey held stakes in the company.
Like Mastercard Incorporated (NYSE: MA), Morgan Stanley (NYSE: MS), Adobe Inc. (NASDAQ: ADBE), and FedEx Corporation (NYSE: FDX), McDonald’s Corporation (NYSE: MCD) is one of the notable stocks gaining hedge funds’ attention in 2021.
7. Dell Technologies Inc. (NYSE: DELL)
Alyeska Investment Group’s Stake Value: $31.25 million
Percentage of Alyeska Investment Group’s 13F Portfolio: 0.36%
Number of Hedge Fund Holders: 62
Ranking 7th on our list of 10 large-cap stocks to buy according to Anand Parekh’s Alyeska Investment Group, Dell Technologies Inc. (NYSE: DELL) is an information technology solutions, hardware, and services company. Dell Technologies Inc. (NYSE: DELL) was incorporated in 1984 and is based in Round Rock, Texas. The latest filings by Alyeska Investment Group reveal that the hedge fund owned 313,555 shares in the firm at the end of June 2021 that are worth $31.25 million, representing 0.36% of the portfolio. The fund initiated a new position in the computing company in the second quarter of 2021.
On September 17th, Morgan Stanley set Dell Technologies Inc. (NYSE: DELL)’s target price at $133 with an Overweight rating.
In addition to Mastercard Incorporated (NYSE: MA), Morgan Stanley (NYSE: MS), Adobe Inc. (NASDAQ: ADBE), and FedEx Corporation (NYSE: FDX), hedge funds are paying attention to Dell Technologies Inc. (NYSE: DELL) amid the company’s long-term growth potential.
6. Airbnb, Inc. (NASDAQ: ABNB)
Alyeska Investment Group’s Stake Value: $20.9 million
Percentage of Alyeska Investment Group’s 13F Portfolio: 0.24%
Number of Hedge Fund Holders: 58
Formed in 2007 and rooted in San Francisco, California, Airbnb, Inc. (NASDAQ: ABNB) ranks 6th on our list of 10 large-cap stocks to buy according to Anand Parekh’s Alyeska Investment Group. Airbnb, Inc. (NASDAQ: ABNB) connects tourists to lodging using its online platform. Latest filings by Alyeska Investment Group reveal that the hedge fund owned 136,500 shares in the firm at the end of June 2021 that are worth $20.9 million, representing 0.24% of the portfolio. The fund initiated a new position in the travel firm in the second quarter of 2021.
On August 17th, Citi boosted Airbnb, Inc. (NASDAQ: ABNB)’s target price from $149 to $152 with a Neutral rating.
As of the second quarter, 58 hedge funds out of the 873 funds tracked by Insider Monkey held stakes in the company worth $2.7 billion versus 52 hedge funds with $2.4 billion worth of stakes in the previous quarter. With a stake of $526.6 million, Ken Griffin is the company’s biggest stakeholder.
Like Mastercard Incorporated (NYSE: MA), Morgan Stanley (NYSE: MS), Adobe Inc. (NASDAQ: ADBE), and FedEx Corporation (NYSE: FDX), Airbnb, Inc. (NASDAQ: ABNB) is one of the notable stocks gaining hedge funds’ attention in 2021.
5. NIKE, Inc. (NYSE:NKE)
Alyeska Investment Group’s Stake Value: $67.8 million
Percentage of Alyeska Investment Group’s 13F Portfolio: 0.79%
Number of Hedge Fund Holders: 67
Ranking 5th on our list of 10 large-cap stocks to buy according to Anand Parekh’s Alyeska Investment Group, NIKE, Inc. (NYSE: NKE) centers around the sports shoes and equipment market internationally. NIKE, Inc. (NYSE: NKE) was inaugurated in 1964 and is based in Beaverton, Oregon. Latest filings by Alyeska Investment Group reveal that the hedge fund owned 438,610 shares in the firm at the end of June 2021 that are worth $67.8 million, representing 0.79% of the portfolio. The fund initiated a new position in the footwear brand in the second quarter of 2021.
On July 23rd, Oppenheimer increased NIKE, Inc. (NYSE: NKE)’s target price from $150 to $195 with an Outperform rating. With a stock price of $156.42, the price went up by 8.01% in the last 6 months. The second quarter revenue of NIKE, Inc. (NYSE: NKE) was $11.2 billion compared to the first quarter’s $10.6 billion. The second quarter’s EPS was $0.78, compared to the estimated $0.62.
As of the second quarter, 67 hedge funds out of the 873 funds tracked by Insider Monkey held stakes in the company worth $6.4 billion versus 78 hedge funds with $5.2 billion worth of stakes in the previous quarter. With a stake of $1.35 billion, Terry Smith is the company’s biggest stakeholder.
4. Walmart Inc. (NYSE:WMT)
Alyeska Investment Group’s Stake Value: $17 million
Percentage of Alyeska Investment Group’s 13F Portfolio: 0.2%
Number of Hedge Fund Holders: 71
Originating in 1945 and located in Bentonville, Arkansas, Walmart Inc. (NYSE: WMT) ranks 4th on our list of 10 large-cap stocks to buy according to Anand Parekh’s Alyeska Investment Group. Walmart Inc. (NYSE: WMT) revolves around consumer staples in the retail and wholesale market. Latest filings by Alyeska Investment Group reveal that the hedge fund owned 122,248 shares in the firm at the end of June 2021 that are worth $17 million, representing 0.2% of the portfolio.
On August 18th, Cowen boosted Walmart Inc. (NYSE: WMT)’s target price from $170 to $175 with an Outperform rating.
As of the second quarter, 71 hedge funds out of the 873 funds tracked by Insider Monkey held stakes in the company worth $8 billion versus 58 hedge funds with $5.9 billion worth of stakes in the previous quarter.
3. Facebook, Inc. (NASDAQ:FB)
Alyeska Investment Group’s Stake Value: $53 million
Percentage of Alyeska Investment Group’s 13F Portfolio: 0.62%
Number of Hedge Fund Holders: 266
Ranking 3rd on our list of 10 large-cap stocks to buy according to Anand Parekh’s Alyeska Investment Group, Facebook, Inc. (NASDAQ: FB) is a software company that connects friends and families across the globe. Facebook, Inc. (NASDAQ: FB) was inaugurated in 2004 and is situated in Menlo Park, California. The latest filings by Alyeska Investment Group reveal that the hedge fund owned 152,311 shares in the firm at the end of June 2021 that are worth $53 million, representing 0.62% of the portfolio. Alyeska Investment Group divested in the social networking group by 6% compared to the first quarter of 2021.
On September 17th, Jefferies increased Facebook, Inc. (NASDAQ: FB)’s target price from $425 to $440 with a Buy rating.
As of the second quarter, 266 hedge funds out of the 873 funds tracked by Insider Monkey held stakes in the company.
2. Alphabet Inc. (NASDAQ:GOOG)
Alyeska Investment Group’s Stake Value: $143 million
Percentage of Alyeska Investment Group’s 13F Portfolio: 1.67%
Number of Hedge Fund Holders: 155
Launched in 1998 and rooted in Mountain View, California, Alphabet Inc. (NASDAQ: GOOG) ranks 2nd on our list of 10 large-cap stocks to buy according to Anand Parekh’s Alyeska Investment Group. Alphabet Inc. (NASDAQ: GOOG) specializes in services related to performance and brand advertisement. The latest filings by Alyeska Investment Group reveal that the hedge fund owned 58,429 shares in the firm at the end of June 2021 that are worth $143 million, representing 1.67% of the portfolio. Alyeska Investment Group increased investment in the communication company by 60% compared to the first quarter of 2021.
On September 17th, Jefferies boosted Alphabet Inc. (NASDAQ: GOOG)’s target price from $3,150 to $3,325 with a Buy rating.
As of the second quarter, 155 hedge funds out of the 873 funds tracked by Insider Monkey held stakes in the company.
1. Microsoft Corporation (NASDAQ:MSFT)
Alyeska Investment Group’s Stake Value: $27 million
Percentage of Alyeska Investment Group’s 13F Portfolio: 0.31%
Number of Hedge Fund Holders: 238
Ranking 1st on our list of 10 large-cap stocks to buy according to Anand Parekh’s Alyeska Investment Group, Microsoft Corporation (NASDAQ: MSFT) focuses on the development, licensing, and support of software, services, devices, and solutions internationally. Microsoft Corporation (NASDAQ: MSFT) was incorporated in 1975 and is based in Redmond, Washington. Latest filings by Alyeska Investment Group reveal that the hedge fund owned 100,298 shares in the firm at the end of June 2021 that are worth $27 million, representing 0.31% of the portfolio. Alyeska Investment Group has expanded investment in the technological giant by 17% compared to the first quarter of 2021.
On September 17th, Tigress Financial raised Microsoft Corporation (NASDAQ: MSFT)’s target price from $303 to $366 with a Buy rating.
As of the second quarter, 238 hedge funds out of the 873 funds tracked by Insider Monkey held stakes in the company.
You can also read about 10 Best Tech Stocks to Buy Now According to Orkun Kilic’s Berry Street Capital and 9 Tech and Software Stocks to Buy According to Hamilton Helmer’s Strategy Capital.
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Disclosure: None. 10 Large-Cap Stocks to Buy According to Anand Parekh’s Alyeska Investment Group is originally published on Insider Monkey.
